Opinion ID: 1317777
Heading Depth: 1
Heading Rank: 1

Heading: Liability of defendants Mala and Jenner.

Text: Defendants Mala and Jenner contend, in separate briefs as respondents: that the allowance of judgments n.o.v. as to them was not in error because plaintiffs' complaint did not allege liability against them as individuals, but only alleged liability against the corporation; that when this contention was made on trial plaintiffs moved to amend their pleadings so as to make defendant Mala individually liable; that the trial court denied the motion to amend; that plaintiffs have not assigned as error on this appeal the denial of that motion; and that no motion was made to amend the pleadings as to defendant Jenner. Plaintiffs made no response to these contentions by the filing of a reply brief and they are not discussed in plaintiffs' opening brief. Upon examination of the pleadings, we find that although the caption of the complaint names as defendants not only the corporation, but also Mala and Jenner, and although the complaint alleged that they were officers of the corporation and that the representations complained of were made by defendant by and through its agents, Mala and Jenner, the complaint does not allege that either of them knew at that time that either of the two alleged representations were false. Neither is it alleged that either or both of them, at the time the alleged representations were made, did not intend to perform either the alleged promise to gravel the road or to dam the creek. [1] Moreover, the complaint prays for judgment only against Defendant and the only identification or description of Defendant in the allegations of the complaint is that    Defendant was and is an Oregon corporation. Neither Mala nor Jenner are referred to as defendants in any allegations of the complaint, but rather as officers and agents of the Defendant. We believe it to be self-evident that when, in an action for damages for fraud, the plaintiff seeks to impose liability upon an agent, officer or employee of a corporation as an individual, in addition to a judgment against the corporation, the plaintiff must both allege and prove facts sufficient to impose liability upon him as an individual defendant. This is particularly true when, as in this case, two or more agents are involved and the facts relating to liability are different as between them, with the result that one or more agents might not be held to be individually liable for the fraud, depending upon such facts. In Webb v. Clark, 274 Or. 387, 393 n. 2, 546 P.2d 1078, 1080 (1976), we said that: Fraud can never be predicated upon a promise to do something in the future unless it is alleged and proven that, at the time of the making of the promise, there was no present intention of performance or, alternatively, that the promise was made with reckless disregard as to whether the promissor could or could not perform. See Elizaga v. Kaiser Found. Hospitals, 259 Or. 542, 487 P.2d 870 (1971); Butte Motor Co. v. Strand, 225 Or. 317, 358 P.2d 279 (1960); Conzelmann v. N.W.P. & D. Prod. Co., 190 Or. 332, 225 P.2d 757 (1950). In this case there was no allegation made and no evidence presented that the defendant did not fully intend to perform his agreement at the time he made it.    (Emphasis added) This is not a case in which such a question is raised by a defendant for the first time after the verdict or on appeal, so as to require us to construe the pleadings liberally in favor of the plaintiff. Even in such a case the total omission of a material and necessary allegation has been held fatal. Fulton Ins. v. White Motor Corp., 261 Or. 206, 214, 493 P.2d 128 (1972). In this case this question was raised in the trial court. Although plaintiffs then moved to amend the allegation of their complaint as to one of the two individuals involved, they have not assigned as error the denial of that motion. Neither have plaintiffs given any reasons or cited any authorities in opposition to these contentions by defendants Mala and Jenner, including their reliance upon the rule as stated in Webb v. Clark, supra . On this state of the record, we hold that the trial court did not err in allowing the motions of defendants Mala and Jenner for entry of judgments n.o.v. as to them.