Opinion ID: 2224660
Heading Depth: 1
Heading Rank: 3

Heading: Damages for the excessive silver removed by Opdahl.

Text: Opdahl initially contends that he could not be liable for conversion as the alleged conversion occurred while he was still owner of the refining business. [2] The record reveals that the trial court based the damage award upon fraud, not conversion. To sustain an action for fraud there need only be a showing of wilful deception made with the intention of inducing a person `to alter his position to his injury or risk.' Littau v. Midwest Commodities, Inc., 316 N.W.2d 639, 643 (S.D.1982) ( citing SDCL 20-10-1). A claim for fraud and deceit is generally a question of fact for the fact finder. Laber v. Koch, 383 N.W.2d 490 (S.D.1986). The trial judge, as finder of fact in this case, found that Opdahl represented that $760,000 in silver was stockpiled at Tri-State. The court based the damage award of $210,000 on Opdahl's representation to hold that amount of silver, as security, until Tri-State paid the bank note. The court found Tri-State detrimentally relied upon this representation by paying the note without receiving the silver from Opdahl. There is sufficient evidence in the record to support these findings. Opdahl argues that the fraud claim is barred by the six-year statute of limitations under SDCL 15-2-13(6). Opdahl correctly asserts that the 1984 complaint failed to state a claim for the silver in that it was based solely upon breach of the Apaloosa lease. The cause of action for the conversion of the silver was pled in August of 1986 and the fraud claim was not pled until trial in 1987. Thus, both causes of action relating to the silver arose more than six years before being pled. However, SDCL 15-2-3 provides: In an action for relief on the ground of fraud the cause of action shall not be deemed to have accrued until the aggrieved party discovers, or has actual or constructive notice of, the facts constituting the fraud. Opdahl claims that Tri-State knew the silver was being taken in 1980, as Clary testified that he notified Hoff each time Opdahl took silver. There is nothing, however, to indicate that Tri-State had notice of the facts constituting fraud. Since the contract provided Opdahl would receive a certain amount of silver, Hoff would have no reason to suspect fraud based on Clary's phone calls. The trial court so found, and held that Tri-State first learned of the fraud in 1982, as a result of the report by the private investigator. This finding is not clearly erroneous and the fraud claim is not barred by the six-year statute of limitations under SDCL 15-2-3. Opdahl also claims that Tri-State failed to plead fraud with particularity as required by SDCL 15-6-9(b). In Holy Cross Parish v. Huether, 308 N.W.2d 575 (S.D.1981), we stated that fraud is sufficiently pled if the pleading party has set out facts indicating that there was a knowing misrepresentation, and that the plaintiff relied upon this falsity. Tri-State's motion to amend its pleadings at the close of the trial alleged that Opdahl made misrepresentations concerning the silver and that Tri-State relied upon these misrepresentations to its detriment. This was sufficient to comply with Holy Cross Parish. Finally, Opdahl claims that it was improper for the trial court to permit Tri-State to amend its complaint to include a cause of action for fraud at the close of the evidence. SDCL 15-6-15(b) provides in part: When issues not raised by the pleadings are tried by express or implied consent of the parties, they shall be treated in all respects as if they had been raised in the pleadings. Such amendment of the pleadings as may be necessary to cause them to conform to the evidence and to raise these issues may be made upon motion of any party at any time, ... (emphasis added). The testimony and other evidence indicates that the removal of the silver was the central issue at trial. Tri-State's proof throughout the trial indicated that Opdahl received or retained silver fraudulently. Opdahl had sufficient opportunity to cross-examine Tri-State's witnesses and present his defense in regard to the issue of fraud. If the opposing party had a fair opportunity to litigate the issue and no additional evidence would have been offered, there is no prejudice to the opposing party and an amendment may be granted under SDCL 15-6-15(b) in the trial court's discretion. Bucher v. Staley, 297 N.W.2d 802 (S.D. 1980). The issue of fraud was tried by the implied consent of the parties and it was proper for the trial court to allow Tri-State to amend its complaint to conform to the evidence. Id.