Opinion ID: 2092601
Heading Depth: 1
Heading Rank: 1

Heading: consumer fraud and deceptive business practices act

Text: Plaintiff first argues that the appellate court erred when it affirmed the summary judgment on the alleged violation of the Consumer Fraud Act, but at the same time found disputed issues of material fact precluding summary judgment of plaintiff's common law fraud claim. Plaintiff contends that the Consumer Fraud Act provides broader protection than common law fraud and that the consumer need prove fewer elements to satisfy a claim under the Act. Plaintiff posits that if the transaction under scrutiny is one which falls under the ambit of the Act, then facts that establish common law fraud must also establish a statutory violation. Thus, the appellate court logically could not have reinstated the common law fraud claim and at the same time dismissed a claim subsumed under the Act requiring a lower burden of proof. We agree. Section 2 of the Consumer Fraud and Deceptive Business Practices Act provides: [U]nfair or deceptive acts or practices, including but not limited to the use or employment of any deception, fraud, false pretense, false promise, misrepresentation or the concealment, suppression or omission of any material fact, with intent that others rely upon the concealment, suppression or omission of such material fact, or the use or employment of any practice described in Section 2 of the `Uniform Deceptive Trade Practices Act'    in the conduct of any trade or commerce are hereby declared unlawful whether any person has in fact been misled, deceived or damaged thereby. (Ill.Rev.Stat.1987, ch. 121½, par. 262.) The Act also specifically provides for a private right of action. Ill.Rev.Stat.1987, ch. 12½, par. 270a. On its face, it appears that all a plaintiff need prove to establish a violation of the Act is: (1) a deceptive act or practice, (2) intent on the defendants' part that plaintiff rely on the deception, and (3) that the deception occurred in the course of conduct involving trade or commerce. Significantly, the Act does not require actual reliance. On the other hand, in order to establish a claim for common law fraud in Illinois, a plaintiff must allege and prove: (1) a false statement of material fact; (2) the party making the statement knew or believed it to be untrue; (3) the party to whom the statement was made had a right to rely on the statement; (4) the party to whom the statement was made did rely on the statement; (5) the statement was made for the purpose of inducing the other party to act; and (6) the reliance by the person to whom the statement was made led to that person's injury. Redarowicz v. Ohlendorf (1982), 92 Ill.2d 171, 185-86, 65 Ill.Dec. 411, 441 N.E.2d 324. In superimposing the elements of the two causes of action and holding them up to the light, it is unquestionable that so long as the alleged deception occurred in a course of conduct involving trade or commerce, facts satisfying a claim for common law fraud will necessarily satisfy a claim under the Act. Thus, we agree with plaintiff and find the appellate court's simultaneous reversal of summary judgment of the common law fraud claim and affirmance of summary judgment of a violation under the Act inconsistent. This conclusion does not dispose of the matter entirely, however. The question now becomes whether count I was properly reinstated. In their brief and at oral argument, defendants strenuously argue that the appellate court erred in finding material issues of fact with regard to the fraud count and therefore this court should reinstate the trial court's dismissal of all counts of plaintiff's complaint. The appellate court based its decision on the fact: It is uncontroverted that Siegel was shown a scale model of the condominium unit which failed to disclose the presence of posts or mullions. The 8½- by 11inch OMM brochure and property report which were distributed to Siegel prior to his purchase of the unit did not disclose the existence of posts or mullions on the terrace. In addition, according to Siegel, Levy expressly stated that unit 48A would have a special terrace arrangement that would be expansive enough for a band, tables and dancing. Siegel provided the expert testimony of two architects who corroborated his testimony regarding the absence of posts or mullions on the sales brochure and property reports for OMM. (219 Ill.App.3d at 586-87, 162 Ill.Dec. 298, 579 N.E.2d 1112.) The appellate court found that, under these facts, the trial court improperly entered summary judgment because material issues of fact remained. We are in accord with the appellate court's determination on this matter. The absence of mullions or posts in the model (although not to scale as the appellate court asserted), the sales brochure, the property report, and Levy's statements regarding the unique nature of the terrace arguably constitute false representations of material fact. The fact that the purchase agreement referred to floor plans containing architectural markings representing mullions diminishes this conclusion but a littleespecially when the marks appear insignificant to anyone but an architect. Viewing the facts strictly against the Levy Organization, in light of the six elements necessary for a fraud claim and the requirements for granting summary judgment, we find that the appellate court properly reinstated count I of plaintiff's complaint. Further, in light of our analysis regarding the scope of the Consumer Fraud Act, we reverse the appellate court decision and reinstate count V of plaintiff's complaint.