Opinion ID: 1354462
Heading Depth: 1
Heading Rank: 1

Heading: Assessment of Damages for Fraudulent Misrepresentation.

Text: In this case, the Ledbetters fraudulently misrepresented to the Webbs the condition of the ice cream machines. Relying on these representations, the Webbs purchased the machines and began to use them in the business. The trial court awarded the Webbs the difference between the value of the machines as represented and their actual value. The trial court awarded the Webbs additional consequential damages for the proven lost revenues caused by the malfunctioning machinery. The trial court, however, also found that some of the business losses were caused by the Webbs' negligence in maintaining the machines, that is, by their failure to exercise due care subsequent to the Ledbetters' tortious acts of misrepresentation. It is fundamental law that [u]nder the doctrine of avoidable consequences a person injured by the tort of another is not entitled to damages which he could have avoided by the use of due care after the commission of the tort. Rutledge v. Johnson, 81 N.M. 217, 220, 465 P.2d 274, 277 (1970). Damages caused by the injured party's negligent acts cannot be recovered. See NMSA 1978, UJI Civ. 18.11, 18.20 (Repl.Pamp. 1980). Mitigation of damages raises questions of causation, not of comparative fault; therefore, the trial court acted improperly in stating its analysis in terms of comparative fault. Finally, it should be noted that the principle of avoidable consequences or mitigation of damages is applicable to torts both negligent and intentional. The Court today does not reach the question of whether the comparative negligence system we adopted in Scott v. Rizzo, 96 N.M. 682, 634 P.2d 1234 (1981) governs the assessment of damages in actions for fraudulent misrepresentation or other intentional torts.