Court Opinion

ID: 9647308
Source: CourtListenerOpinion
Date Created: 2023-08-23 13:30:22.620449+00
Date Added: 2024-06-11T18:11:47.760430
License: Public Domain

On Motion for Rehearing.
In its motion for rehearing, appellant insists, among other things, that the evidence establishes that the use of smaller type than that required by the Consumer Credit Code was the result of an accidental and bona fide error. As in the original opinion, we shall refer to appellant as “defendant.”
Our discussion of the defense of accidental and bona fide error will be based on the assumption that Bankers Investment Company, which furnished the form used by defendant, acted in good faith, and that the failure of the instrument to meet the statutory requirements relating to type size was the result of an accidental and bona fide error by Bankers. We need not concern ourselves with the conduct or state of mind of the printer, since there is no evidence indicating that the printer did not intentionally and deliberately use the smaller type size and, therefore, there is no evidence of accidental and bona fide error on the part of the printer.
We specifically hold that defendant did not discharge its burden of proof by establishing accidental and bona fide error on the part of Bankers. The relevant conduct is the conduct of defendant, and not the conduct of a third party. For example, if defendant established that the violation was the result of an accidental and bona fide error on its part, plaintiff could not circumvent that defense by showing that Bankers acted in a deliberate, intentional and fraudulent manner.
We here concern ourselves with defendant’s contention that the finding that it relied on Bankers to furnish it with forms which complied with the requirements of the Code necessarily establishes that the violation was the result of an accidental and bona fide error by defendant, despite the trial court’s deliberate refusal to make a finding attributing the violation to accidental and bona fide error on the part of defendant.
As defendant points out, the dictionary defines “rely” as “To rest with confidence, as when satisfied of the veracity, integrity or ability of persons, or of the certainty of facts or of evidence; to have confidence; to trust; to depend; . . ..”
Even if it be assumed that defendant was justified in having confidence in Bankers; that defendant was satisfied of the veracity, integrity or ability of Bankers; and that defendant’s trust in, and dependence on, Bankers rested on defendant’s knowledge of Bankers’ methods of doing business and reputation, such reliance would not establish defendant’s good faith belief that Bankers had performed in the anticipated *864manner. It is one thing to believe that a person will perform in a certain manner. It is another thing to believe that a person has performed in that manner. To establish that defendant acted in good faith, it is necessary to show that, after Bankers had delivered the forms to defendant, defendant believed that the forms were correct and met the statutory requirements. Certainly, it cannot be seriously argued that defendant acted in good faith if, despite its justified confidence in Bankers, defendant knew, after receiving the forms, that they did not meet the Code requirements. Justified reliance does not justify conduct engaged in with knowledge that one’s reliance, however much initially justified, was misplaced.
Since the burden of establishing the defense was on defendant, it was necessary that defendant produce evidence not only that it relied on Bankers to do the right thing, but that defendant’s subsequent action was based on the belief that Bankers had acted in accordance with defendant’s expectations. Stated differently, it was necessary that defendant produce evidence to the effect that it had no knowledge of the fact that, with respect to type size, the forms did not meet the statutory requirements. . In view of the total absence of evidence concerning defendant’s knowledge, it cannot be said that the evidence establishes the defense of accidental and bona fide error as a matter of law.
The motion for rehearing is overruled.