Opinion ID: 1354462
Heading Depth: 2
Heading Rank: 3

Heading: Application of Comparative Negligence

Text: We are faced with the conflict between the trial court's findings that the Ledbetters negligently misrepresented the condition of the machine and that they falsely represented the machine, knowing the representation to be false. In the case of uncertain, doubtful or ambiguous findings, an appellate court is bound to indulge every presumption to sustain the judgment. Guaranty Banking Corporation v. Western Ice & Bottling Co., 28 N.M. 19, 205 P. 728 (1922). Seeming inconsistencies are to be reconciled by the reviewing court, if possible, to avoid what may be challenged as contradictions. City of Raton v. Vermejo Conservancy Dist., 101 N.M. 95, 678 P.2d 1170, (1984); see also Hartzell v. Jackson, 41 N.M. 700, 73 P.2d 820 (1937). Findings are not to be construed with the strictness of special pleadings. It is sufficient if    we can see enough upon a fair construction to justify the judgment of the court, notwithstanding their want of precision and the occasional intermixture of matters of fact and conclusions of law. Hoskins v. Albuquerque Bus Company, 72 N.M. 217, 224, 382 P.2d 700, 705 (1963) (quoting Fraser v. Bank, 18 N.M. 340, 351, 137 P. 592, 594 (1913)). The finding of intentional fraudulent misrepresentation has been upheld as supported by substantial evidence. The judgment, which includes an award of punitive damages, is inconsistent with a finding of negligence. In construing the findings to support the judgment, we conclude that the finding of negligent misrepresentation concerning the machines is instead an erroneous conclusion of law which implies that negligent misrepresentation is somehow a lesser included tort within the greater tort of fraud. See Goodwin v. Travis, 58 N.M. 465, 272 P.2d 672 (1954) (ultimate facts are often indistinguishable from conclusions of law). Negligent misrepresentation is not, of course, a lesser included cause of action within a claim for deceit or fraud. See Sims v. Craig, 96 N.M. 33, 627 P.2d 875 (1981) (negligent misrepresentation differs from tort of deceit in that basis for liability in latter is intent to mislead); Maxey v. Quintana, 84 N.M. 38, 499 P.2d 356 (Ct. App.), cert. denied sub nom Jack Dailey Realty, Inc. v. Maxey, 84 N.M. 37, 499 P.2d 355 (1972) (negligent misrepresentation is an action separate from tort of fraud or deceit); State ex rel. Conley Lott Nichols Machinery Co. v. Safeco Insurance Company of America, 100 N.M. 440, 671 P.2d 1151 (Ct.App.), cert. denied, 100 N.M. 327, 670 P.2d 581 (1983) (negligent misrepresentation and fraudulent misrepresentation differ as to scienter and burden of proof). An appellate court is not bound by a trial court's erroneous conclusion of law. City of Raton v. Vermejo Conservancy Dist., 101 N.M. 95, 678 P.2d 1170 (1984); Sachs v. Board of Trustees, Etc., 89 N.M. 712, 557 P.2d 209 (1976). We hold therefore, that where plaintiffs' conduct is found to be intentionally fraudulent or misleading and that finding is supported by substantial evidence, it is error to conclude that the same conduct also amounts to negligent misrepresentation. However, the trial court's application of comparative fault percentages to the Webbs' consequential damages, in Finding No. 5, deserves comment. An appellate court may look to the remarks or opinions of the trial judge for clarification of ambiguities, Sanders v. Carmichael Enterprises, Inc., 57 N.M. 554, 260 P.2d 916 (1953), so long as such remarks or opinions are not made the basis for error on appeal. Balboa Construction Co., Inc. v. Golden, 97 N.M. 299, 639 P.2d 586 (Ct.App. 1981). In his comments at the close of the case, Judge Love found that the Webbs had suffered $800 in consequential damages due to decreased sales after the machine malfunctioned. He said, I think that should be split, $200 to the defendants and $600 to the plaintiffs on the basis of comparative fault. I think the defendants had an obligation to check these things and that they hadn't been kept right up to snuff, but the defendants didn't watch them like they should have. Otherwise, this would not have caked up to the extent that it did. They must have known that that ice cream was going somewhere     [T]hey knew there was leakage out the front     and so they must have known that something was going on there. Judge Love's remarks concerning consequential damages indicate the award was based on the Webbs' failure to heed early warning signs that the machine was malfunctioning and to effect earlier repairs and/or maintenance as were necessary to prevent the damage to the machine from becoming worse, i.e., to mitigate. Finding No. 5 which apportions liability for $200 worth of damage to defendants is essentially a finding that the Webbs had breached their duty to mitigate damages and thus unnecessarily had increased their consequential damages by $200. We do not disturb the trial court's finding that, as a result of the Ledbetters' misrepresentations, the Webbs suffered consequential damages. We simply hold that the court's legal conclusion that $200 of those damages resulted from the Webbs' comparative negligence should have stated, instead, that the $200 assessed against the Webbs resulted from their failure to mitigate. Plaintiffs argue that the Webbs were not entitled to any consequential damages. That argument rests on their insistence that they did not misrepresent the condition of the machine and that the malfunction was caused solely by the Webbs' negligent maintenance. As we have noted, there is substantial evidence to support the finding that the Ledbetters knew the machine was defective at the time of the sale.