Opinion ID: 1138261
Heading Depth: 3
Heading Rank: 3

Heading: beard's misrepresentations

Text: Iuka Guaranty also urges for reversal and a new trial under M.R.C.P. 60(b), which allows a new trial in cases where fraud has occurred. The allegations of Beard's misrepresentations are these: Nancy Beard testified that she alone signed the promissory note to Fidelity Federal Bank, the bank from which she borrowed the money to pay the Iuka loan. Her statement was a misrepresentation. Nancy, and her husband P.O., cosigned the promissory note to Fidelity Federal on August 23, 1985. The majority holds that this misrepresentation lacks the scienter for fraud. Scienter for fraud requires either the utterer knowingly lying, or unknowingly misstating himself when he should have known the true facts. Seaboard Planning Corp. v. Powell, 364 So.2d 1091, 1094 (Miss. 1978). In this case, Nancy Beard should certainly have known if she signed the second promissory note alone, or with her husband, since she makes it a centerpiece of her case. In addition, most people would undoubtedly remember whether they had signed a note of indebtedness for approximately $38,000 alone, or with a co-signer. Scienter is established by itself under the circumstances. The misrepresentation is material because Nancy relies on it to show consideration. Because the majority could not tell whether her false testimony made the difference in this case, I would reverse and remand for a new trial under M.R.C.P. 60(b). The intent and materiality requirements of fraud are present, as well as the other factors. In addition, Nancy Beard misrepresented facts to the jury. To hold otherwise would be to implicitly encourage perjury. For these reasons, I respectfully dissent from the majority opinion. HAWKINS, C.J., joins this opinion.