Opinion ID: 1983165
Heading Depth: 1
Heading Rank: 7

Heading: Fraud Exception

Text: Lastly, Copeland argues that he was fraudulently induced to make the revelations. Having already established in the foregoing discussion that such representations as were made by the railroad's agents were the representations of the railroad, we move on to a consideration of the nature of those representations. The elements of fraud are (1) a false representation of material fact, (2) knowledge that the representation was false or made in reckless disregard as to its truthfulness or falsity, (3) an intent to induce another to act, (4) a justifiable reliance on the representation, and (5) injury or damage resulting from such reliance. See, Cummings v. Curtiss, 219 Neb. 106, 361 N.W.2d 508 (1985); Havelock Bank v. Woods, 219 Neb. 57, 361 N.W.2d 197 (1985); Flakus v. Schug, 213 Neb. 491, 329 N.W.2d 859 (1983). Copeland has expressly alleged the existence of elements (2), (4), and (5), and the existence of element (3) may be fairly inferred from his operative petition as a whole. The question is whether he has alleged the existence of element (1). Asked another way, Can fraud be predicated upon a future event? The answer is yes, under certain circumstances. The rule that fraud cannot be based on predictions or expressions of mere possibilities in reference to future events, In re Estate of Hesemann, 214 Neb. 842, 336 N.W.2d 568 (1983), is subject to the well-known exception that fraud may be predicated on a representation concerning any event in the future or acts to be done in the future if such representations are falsely and fraudulently made with an intent to deceive. Smith v. Wrehe, 199 Neb. 753, 261 N.W.2d 620 (1978); Central Constr. Co. v. Osbahr, 186 Neb. 1, 180 N.W.2d 139 (1970). In other words, as applied to the facts of this case, fraud may be predicated on the representation that an event which is in the control of the maker will, or will not, take place in the future if the representation as to the future is known to be false when made, or is made in reckless disregard as to its truthfulness or falsity and the other elements of fraud are present. Since retaliation in the future, as alleged, was an event in the defendant railroad's control when the representation was made and the other elements of fraud have been alleged, the trial court erred in dismissing Copeland's fraud theory against the railroad.