Court Opinion

ID: 9611397
Source: CourtListenerOpinion
Date Created: 2023-08-22 03:56:22.367324+00
Date Added: 2024-06-11T08:14:28.588564
License: Public Domain

Rees, J.:
I dissent. The claim for relief, cause of action (see Hutchinson Nat’l Bank & Trust Co. v. English, 209 Kan. 127, 129, 495 P.2d 1011 [1972]), upon which the majority relies is either nonexistent or is now newly created out of whole cloth. This case demands a new trial because of clearly erroneous instructions.
At the expense of repetition and length, recitation of matters in the record on appeal is appropriate.
Insofar as here material, the petition set forth four claims for relief, one for breach of express warranty, two for breach of implied warranties, and one for fraud. The amount of recovery sought for actual damages was the same on each of the four. Punitive damages were sought only on the fraud claim. Nowhere in the petition is there an express allegation that defendant’s conduct was willful, wanton or malicious.
In the pretrial order it is stated:
“2. The remaining Issues of Fact to be determined are as follows:
*695“a. Whether the defendant was guilty of a breach of warranty as alleged in plaintiffs’ first, second and third claims.
“c. Whether any of the defendant’s acts constituted fraud.
“d. The amount of damages, if any, that plaintiffs are entitled to.
“3. The remaining Issues of Law to be determined are as follows:
“b. Whether plaintiffs are entitled to punitive damages.”
Nowhere in the petition or pretrial order is there reflected a contention of willful, wanton or malicious conduct other than as implicit in the fraud issue. To say defendant consented to trial of the “issue” of willful, wanton and malicious conduct and therefore a proper basis was afforded for the instructions as set forth below misses the mark. There was no meritorious ground for defense objection to the evidence the presentation and admission of which is relied upon to purportedly bring into play K.S.A. 60-215(fe). The evidence involved was patently admissible as to the issue of claimed fraud.
The instructions included the following:
“No. 5
“If you find that plaintiff is entitled to recover, and you also find that the conduct of the defendant was wilful, wanton, malicious [or] constituted fraud, then in addition to the actual damages to which you find plaintiff entitled, you may award plaintiff an additional amount as punitive damages in such sum as you believe will serve to punish defendant and to deter others from like conduct. [Emphasis supplied.]
“No. 7
“You are instructed that plaintiffs seek to recover under one of two alternate theories, the first theory being that defendant, William Gilmore, by selling cows that were diseased or exposed to disease acted in such a way as to be conduct that was wanton, malicious, willful or amounted to fraud.
“The plaintiffs’ second theory upon which they seek recovery is that defendant, William Gilmore, breached either an expressed warranty, an implied warranty of merchantability or an implied warranty of fitness. [Emphasis supplied.]
“No. 8
“In this case the plaintiffs seek exemplary or punitive damages contending that their damages were caused by conduct amounting to wanton, wilful, malicious or fraud by the defendant, in disregard to the plaintiffs’ rights.
“A wanton act is [defined].
“A wilful act is [defined].
“Malice [is defined],
“It is fraud for one knowing that an animal is afflicted with disease or has been exposed to such disease, or having reason to know such fact, which is not known *696to the purchaser and not discernible on inspection, to sell such animal without disclosing such fact. [Emphasis supplied.]
“No. 9
“If you find that plaintiffs are entitled to recover and you also find that the conduct of the defendant was wilful, or wanton, or malicious or constituted fraud, then in addition to the actual damages to which you find plaintiffs entitled, you may award plaintiffs an additional amount as punitive damages in such sum as you believe will serve to punish defendant and to deter others from like conduct.” (Emphasis supplied.)
A breach of warranty is a breach of contract. Fraud is a tort. Conduct that is willful, wanton, or malicious, without more, is neither. Willful, wanton and malicious are adjectives descriptive of wrongful conduct. Although not explicitly stated in its discussion of the jury instructions issue, the majority opinion effectively holds that willful, wanton and malicious conduct standing alone constitutes a claim for relief. I know of no authority to support that proposition. None is cited. (The most nearly forthright statement of the majority’s proposition lies somewhat hidden in its discussion of whether there was error in failing to give the requested special questions. There it is said “either intentionally fraudulent conduct or willful, wanton and malicious conduct could equally well serve as a basis for the award of punitive damages.” [Emphasis supplied.])
I am unable to conclude other than that the jury was clearly directed that it should or could return verdicts for both actual and punitive damages (1) if it found no fraud but found willful, wanton and malicious conduct or (2) if it found no fraud or breach of warranty but found willful, wanton and malicious conduct. Instruction 5 speaks in the disjunctive. Under it punitive damages were recoverable if there was breach of warranty and willful, wanton and malicious conduct. Instruction 9 is a second statement of the same instruction. Instructions 7 and 8 also are in the disjunctive. They repeat recitation of alternate theories of recovery, fraud on the one hand and willful, wanton and malicious conduct on the other. The instructions do not accurately state the law. Defendant’s right to a fair trial was substantially prejudiced.
The majority opinion incorrectly relies upon Hess v. Jarboe, 201 Kan. 705, 443 P.2d 294 (1968). Hess stands for the proposition that punitive damages are not recoverable for breach of contract in the absence of an independent tort. Further, the *697independent tort must cause additional injury and “the proof of the independent tort must indicate the presence of malice, fraud or wanton disregard for the rights of others.” 201 Kan. at 709. The instructions in this case permitted recovery for willful, wanton and malicious breach of contract. No independent tort involving, indicating or having as an element, willful, wanton and malicious conduct was required to be found for recovery of punitive damages upon a finding of breach of contract.
Beverly v. McCullick, 211 Kan. 87, 505 P.2d 624 (1973), and Service Oil Co., Inc. v. White, 218 Kan. 87, 542 P.2d 652 (1975), are correct representations of the law applicable under their facts. The former was a conspiracy and breach of fiduciary duty case. 211 Kan. at 98-99. Although proof of contract was involved to establish the existence of fiduciary duty (see George v. BolenWilliams, Realtors, 2 Kan. App. 2d 385, 393, 580 P.2d 1357 [1978]), the claims for relief were not for breach of contract. Service Oil was a fraudulent concealment, not a breach of contract, case. 218 Kan. at 97.
The trial court refused to submit defendant’s three requested special questions quoted in the majority opinion. Had these been submitted, with the jury verdicts as they were, and under the instructions given, it would have been possible to learn whether the jury found (1) defendant not guilty of fraud or breach of warranty but that (2) he sold the cattle in a willful, wanton or malicious manner. I understand the majority to say that answers to these special questions disclosing these findings would support the punitive damages verdict. I disagree. The situation demonstrates that in this case submission of requested special questions would have been not only helpful but advisable.
The majority is mistaken in its conclusion that the instructions as given by the court properly set forth the law. The instructions were clearly erroneous and the case should be remanded for a new trial.