Opinion ID: 312332
Heading Depth: 3
Heading Rank: 2

Heading: Merchantability of the Equipment

Text: 77 In Question No. 3(a) the jury found that the defendant represented that it would deliver in the future goods suitable to be sold in the market and suitable for the use which they are intended. The jury further found in succeeding subparts to Question No. 3 that such representation was untrue and made for the purpose of inducing the plaintiff to enter into the contract [3(b)], such representation was relied upon by the plaintiff [3(c)], and such representation was a proximate cause of plaintiff's damages [3(d)]. Unlike in Questions Nos. 1 and 2 the jury was not asked to find in Question No. 3 whether such representation as to the suitability of the goods was made with the intent, design, and purpose of deceiving the plaintiff. 78 RCA claims that as a matter of Texas law, the jury cannot find fraud unless it finds the defendant had the intent and design to defraud the plaintiff. 79 This is correct, Hazle v. McDonald, 449 S.W.2d 343, 345 (Tex.Civ. App.1969) and Dobbs v. Camco, Inc., 445 S.W.2d 565, 570 ref. n. r. e. (Tex.Civ. App.1969). When the fraud involves future performance as was involved in Question No. 3 regarding the future delivery of suitable equipment, then there must be at the time the misrepresentation is made an intent not to perform the promised act. Medina v. Sherrod, 391 S.W.2d 66 (Tex.Civ.App.1965). Therefore, the District Court erroneously omitted a question as to whether RCA had an intent to deceive at the time it represented it would deliver suitable equipment. 80 However, Fredonia is correct in asserting that, under Rule 49(a), Fed.R. Civ.P., as to any omitted question, it is deemed that the court made a finding on the issue omitted in accordance with the judgment on the special verdict. L'Urbaine Et La Seine v. Rodriquez, 5 Cir., 1959, 268 F.2d 1, 4 and John R. Lewis, Inc. v. Newman, 5 Cir., 1971, 446 F.2d 800, 805. Since RCA made no objection at the trial to the omitted question, RCA's objection on appeal comes too late. Id. and authorities cited therein. 81