Opinion ID: 2630568
Heading Depth: 2
Heading Rank: 1

Heading: integration clause and recovery for fraud

Text: ¶ 7 Defendants argue that plaintiff's decision to affirm a contract containing a merger clause after the fraud was discovered precludes them from suing for fraud. They maintain that the defrauded party must rescind the contract to preserve the right to sue for fraud; if the aggrieved party elects to affirm the contract, that party is then limited to the remedies available under the contract. Jury instruction 41 expressly contradicted this position at trial, informing the jury that [a]n integration clause in a contract between the parties does not bar recovery for fraud or negligent misrepresentation. Although given an opportunity to do so, counsel not only failed to object to this instruction, but also affirmatively indicated that the argument now raised on appeal would not be made. [1] ¶ 8 The rules of civil procedure require a party to preserve an objection to a jury instruction for appeal absent special circumstances; unless a party objects to an instruction or the failure to give an instruction, the instruction may not be assigned as error except to avoid a manifest injustice. Utah R. Civ. P. 51(d). While Rule 51(d) does permit us to review instructional errors in the interests of justice ... it is incumbent upon the aggrieved party to present a persuasive reason for exercising that discretion ... and this requires showing special circumstances warranting such a review. Crookston I, 817 P.2d 789, 799 (quoting Hansen v. Stewart, 761 P.2d 14, 17 (Utah 1988)). The rule applies in both criminal and civil contexts; we observe the general rule that `issues not raised at trial cannot be argued for the first time on appeal.' Monson v. Carver, 928 P.2d 1017, 1022 (Utah 1996) (quoting State v. Lopez, 886 P.2d 1105, 1113 (Utah 1994)). The defendants on appeal do not address the waiver issue however, and do not make a showing that there are special circumstances justifying this court's review. The issue was therefore not preserved for appeal.