Opinion ID: 440314
Heading Depth: 2
Heading Rank: 4

Heading: Dr. Freeman's Claim of Fraud

Text: 68 The Freemans assert that the district court erroneously usurped the province of the jury in granting the Dr. Franklin Perkins School's motion for judgment notwithstanding the verdict with respect to the jury's decision in favor of Dr. Freeman on his fraud claim. Dr. Freeman argues that his claim of fraud is supported by either of two alleged misrepresentations: (1) Dr. Spencer's promise to apply to Illinois for aid on June 28, 1980 when he had no intention to apply; or (2) Dr. Spencer's failure to inform to Dr. Freeman on June 28, 1980 of the School's formal decision not to apply for Illinois aid. 69 Again Massachusetts law governs the disposition of this claim since under the most significant contacts rule, Massachusetts had the most significant relationship to the occurrence. Although Dr. Freeman was in Texas at the time this phone conversation took place, the conduct which allegedly caused the injury occurred in Massachusetts. Furthermore, as we stated earlier in this opinion, the relationship of the parties to this dispute is centered in Massachusetts. See supra note 19 and 23. The School is located and incorporated in Massachusetts and April attended school in Massachusetts. 70 Under Massachusetts law, fraud is defined as a false representation of material fact with knowledge of its falsity for the purpose of inducing the plaintiff to act thereon, and that the plaintiff relied upon the representation as true and acted upon it to his damage. Slaney v. Westwood Auto Inc., 366 Mass. 688, 322 N.E.2d 768, 779 (1975). With respect to Dr. Freeman's first assertion, it is important to note that Dr. Spencer's statement that the School would apply for Illinois aid was not a false representation of a material existing fact. It was promissory in nature and directed at future conditions. A promise alone cannot furnish the basis for an action of fraud or deceit unless the defendant, at the time the promise was made, had no intention to carry it out. Turner v. Johnson & Johnson, 549 F.Supp. 807, 812 (D.Mass.1982); Barrett Associates, Inc. v. Aronson, 346 Mass. 150, 190 N.E.2d 867 (1963). 71 Dr. Freeman asserts that it was the jury's function to determine whether Dr. Spencer had an intention, when the statement was made, not to carry out the promise. While this characterization of the jury's role is generally correct, in the present case, no evidence was presented to support the contention that Dr. Spencer did not intend to perform his promise. The result of the conversation between Dr. Freeman and Dr. Spencer on June 28, 1980 does not demonstrate that Dr. Spencer never intended to perform. Dr. Freeman, who was to put his guarantee in writing, did not put his guarantee in writing until November, 1980. Dr. Spencer, who was to apply for aid, never applied, apparently because he came to the conclusion early in the fall of 1980 that the School may still not have been fully reimbursed under the contract terms submitted by the Illinois Board. See supra note 14. Further, subsequent attempts to apply for aid were made in November, 1980 and February, 1981, although these attempts were apparently bungled by the School. However, Dr. Spencer's obvious intent was to accommodate Dr. Freeman's wish to have April return to and remain in School. Under these circumstances, in the absence of any evidence that Dr. Spencer never intended to apply for Illinois aid, the School cannot be said to have acted to defraud Dr. Freeman. 72 Dr. Freeman's second argument, that Dr. Spencer failed to disclose that the School previously had decided not to apply for Illinois aid, is also unsupported by the evidence since Dr. Spencer informed the Freemans of the substance of the School's new policy to stop doing business with the State of Illinois during their first phone conversation on June 28, 1980. Having told Dr. Freeman of the substance of the policy, it is obvious that Dr. Spencer did not intend to mislead him. 73 Dr. Freeman also failed to establish that either of the alleged misrepresentations were made for the purpose of inducing him to act. Dr. Spencer called the Freeman residence on June 28, 1980 for the purpose of requesting that April not return to School. In their conversation, Dr. Freeman sought to sooth the troubled waters of conflict in order that April might return to the School. In so doing, he proposed that the School apply for Illinois aid. Dr. Spencer's reluctant agreement to apply for Illinois tuition reimbursement pursuant to Dr. Freeman's request certainly cannot be considered misrepresentations made for the purpose of inducing another to act. 74 In conclusion, there is no evidence that Dr. Spencer did not intend to perform the promise to apply for Illinois tuition reimbursement at the time it was made. Although it is not generally the function of a judge to sit as a thirteenth juror and thereby attempt to evaluate the intent of a party who is alleged to have made a misrepresentation, a court has a duty to grant a motion for judgment notwithstanding the verdict when there is insufficient evidence to support the verdict. DiMarzo v. S & P Realty Corporation, 364 Mass. 510, 306 N.E.2d 432, 435 (1974). The district court's decision to grant judgment notwithstanding the verdict with respect to the verdict on liability in favor of Dr. Freeman for fraud is affirmed. 25 75