Opinion ID: 436140
Heading Depth: 2
Heading Rank: 1

Heading: Proof of Actual Damages

Text: 12 First Commodity asserts that Kerr failed to prove any actual damages from the transaction. First Commodity contends that Kerr paid for the right to participate in the upward movement of the price of a certain amount of copper for a given period of time, and that this is what he received. In so contending, First Commodity accurately describes the substance of a commodities option contract as understood by a properly informed investor. Kerr, however, was not a knowledgeable investor in contracts of this kind, and Volosin undoubtedly was aware of Kerr's ignorance in this regard. There is no evidence that Volosin made any attempt to educate Kerr as to option contracts and the investment risks they carry. Instead, Volosin made false promises and representations that Kerr believed and relied upon. In view of Volosin's promises and the nature of the fraud he practiced on Kerr, we hold that Kerr presented sufficient evidence for the jury to conclude that he suffered actual damages. 13 Kerr testified that he never received anything he was promised: 1) Kerr was told he would receive the actual option contracts. There is evidence that Kerr repeatedly contacted First Commodity attempting to ascertain the status of his investment and to get First Commodity to send the option contracts to him, yet the contracts never were received by Kerr. 2) Volosin told Kerr that he would call Kerr weekly to advise him on the status of his investment. Instead, Volosin became very difficult to reach, and others at First Commodity told Kerr that Volosin had been overly optimistic in his assurances to Kerr of huge profits. 3) Volosin promised Kerr that his investment was risk free and would produce a gross return of $75,000 by January 15, 1978. Instead, when Kerr talked to Volosin one last time during the second week in January, Volosin admitted no profits would be realized by January 15 and made a new promise that the profits would be forthcoming by January 31, 1978. January 31 passed and Kerr still had neither possession of the contracts nor profits. After the filing of this lawsuit on February 24, 1978, no more promises, services, or materials were received by Kerr from First Commodity. From this series of events, the jury clearly had sufficient evidence to conclude that Kerr received nothing Volosin had promised him and that having invested substantial funds on the strength of Volosin's fraudulent statements he therefore had sustained actual damages.