Court Opinion

ID: 9613451
Source: CourtListenerOpinion
Date Created: 2023-08-22 04:17:03.793102+00
Date Added: 2024-06-11T18:03:29.117042
License: Public Domain

McDEVITT, Justice,
dissenting.
The appellants appeal to this Court from the district court’s order denying appellants’ motion for reconsideration and motion to amend and sustaining the court’s order granting respondent’s motion for summary judgment. The order was entered on June 1, 1989, and stated, in relevant part, the following:
The court determined that there were no genuine issues of material fact, that the applicable statutes of limitation had expired prior to the commencement of the action and that its previous Order Granting Defendant Lyons’ Motion for Summary Judgment was correct.
The district court’s order granting the respondent’s motion for summary judgment, which was entered on March 23, 1990, contains the following determinations:
1. The activities forming the basis of the Plaintiffs’ claim took place between October, 1976 and April, 1977;
2. The Plaintiffs contacted a Barrister from Cranbrook, B.C., Canada in April, 1977 for the purpose of investigating the Plaintiffs’ potential claims against the moving Defendants;
3. The Plaintiffs did not file their action until November, 1981; more than two years after the occurrence, act or omission of which they complain;
4. The Plaintiffs did not submit affidavits, depositions or other evidence in opposition to the Motion for Summary Judgment which would establish an issue of fact regarding the Defendant’s statute of limitations defense or whether any of the Plaintiffs were under any of the disabilities specified in Idaho Code § 5-230 which would toll the statute of limitations; and
5. There are no genuine issues of material fact, and the appellants’ claims against the respondent’s are barred by the statute of limitations.
This Court’s opinion states that “[t]he first issue on appeal is whether the plaintiff-heirs in this case failed to comply with the requirements of I.R.C.P. 56(e). Because the order of the trial court granting the motion for summary judgment stated that it was partially based on the failure of the plaintiff-heirs to ‘submit affidavits, *777depositions or other evidence in opposition to the Motion for Summary Judgment,’ it is necessary that we address this issue.” (Emphasis added.)
I believe the Court has misinterpreted the ruling of the district court in this regard. The district court did not rule that because appellants failed to submit affidavits or other evidence that summary judgment was proper. What the district court did rule was that “the [appellants] did not submit affidavits, depositions or other evidence in opposition to the Motion for Summary Judgment which would establish an issue of fact.” (Emphasis added.) The trial court held, in terms of the motion for summary judgment and in the context of I.R.C.P. 56(e), that when the motion is properly made and supported, the non-moving party then has the burden of coming forward with evidence that establishes a genuine issue of material fact for trial. The lengthy discussion of the “requirements” of I.R.C.P. 56(e) is dicta and is the result of a misinterpretation of the district court’s ruling.
This Court, in its opinion, limits the scope of its analysis of whether the respondent established that there was no genuine issue of material fact for trial:
We note at the outset that the motion did not assert that summary judgment should be granted on the substantive issue of fraud. Therefore, the plaintiff-heirs were not required to assert any evidence to prove that a genuine issue of material fact existed on the question of fraud.
The Court reverses and remands to the district court those counts alleging fraudulent concealment of professional malpractice under I.C. § 5-219(4) and fraud, misrepresentation, and concealment under I.C. § 5-218(4).
This Court has stated that “I.R.C.P. 9(b) requires that a party alleging fraud must plead the factual circumstances constituting fraud with particularity.” Galaxy Outdoor Adver. v. Idaho Transp. Dep’t, 109 Idaho 692, 696, 710 P.2d 602, 606 (1985). This rule states:
Rule 9(b). Fraud, mistake, condition of the mind, violation of civil or constitutional rights. — In all averments of fraud or mistake, or violation of civil or constitutional rights, the circumstances constituting fraud or mistake, or violation of civil or constitutional rights shall be stated with particularity. Malice, intent, knowledge, and other condition of mind of a person may be averred generally.
To establish fraud, the following nine elements must be shown:
(1) A representation of fact;
(2) Its falsity;
(3) Its materiality;
(4) The speaker’s knowledge of its falsity;
(5) The speaker’s intent that the representation will be acted upon in a reasonably contemplated manner;
(6) The listener’s ignorance of its falsity;
(7) The listener’s reliance on the truth of the representation;
(8) The listener’s right to rely on the truth of the representation; and
(9) The listener’s consequent and proximate injury.
Galaxy, 109 Idaho at 696, 710 P.2d at 606 (citations omitted).
The party alleging fraud has the burden of showing these nine elements. Galaxy, 109 Idaho at 696, 710 P.2d at 606. The Court’s statement that “the heirs were not required to present any evidence to establish that a genuine issue of material fact existed on the question of fraud” is contrary to this rule and removes the burden from the appellant-heirs.
The complaint of the appellant-heirs alleges the following as to fraud:
FIRST CAUSE OF ACTION FRAUDULENT MISREPRESENTATION
31. Plaintiffs incorporate by reference the allegations contained in Paragraphs 1 through 30 as if set forth verbatim herein.
32. That Defendant Lyons represented to Plaintiffs that he successfully represented them in the probate of the Es*778tate of Joseph Chiqui; that but for the efforts of him and his firm Plaintiffs would have taken nothing in the probate and distribution of said Estate.
33. That said representations by Defendant Lyons were false.
34. That said representations materially induced Plaintiffs to pay one-third of the proceeds from the sale of their respective interests in the Chiqui Estate to Defendant Lyons.
35. That Defendant Lyons knew of the falsity of his representations.
36. That Defendant Lyons intended that his representations be acted upon by Plaintiffs and in the manner reasonably contemplated; i.e., that Plaintiffs would pay to Defendant Lyons one-third of the proceeds from the sale of their respective interests in the Chiqui Estate.
37. That Plaintiffs were ignorant of the falsity of Defendant Lyons’ representations.
38. That Plaintiffs relied, by virtue of their confidential, fiduciary relationship with Defendant Lyons, on the veracity of his representation; and that Plaintiffs had a right to rely thereon.
39. That Plaintiffs were consequently and proximately injured as a result thereof.
THIRD CAUSE OF ACTION FRAUDULENT CONCEALMENT
44. Plaintiffs incorporate by reference the allegations contained in Paragraphs 1 through 43 as ff set forth verbatim herein.
45. That Defendant Lyons was aware of and concealed from Plaintiffs the fair market value of their respective interests inherited from the Chiqui Estate, prior to and at the time of the signing by Plaintiffs of the aforementioned agreements to sell their interests and the instruments conveying same.
46. That the information concealed was material to the decision by Plaintiffs whether to sell their respective interests at the price offered by Defendant LeRoux, through Defendant Lyons.
47. That Defendant Lyons knew that the information concealed was material and that it could have reasonably influenced Plaintiffs’ decision whether to sell their respective interests in the Chiqui Estate.
48. That Plaintiffs were not aware of the fair market value concealed by Defendant Lyons, either prior to or at the time of the signing by Plaintiffs of the aforementioned agreements and instruments.
49. That, by virtue of their confidential, fiduciary relationship with Defendant Lyons, Plaintiffs had a right to rely and did, in fact, rely on the counsel of Defendant Lyons regarding the fairness and reasonableness of the price offered by Defendant LeRoux.
50. That Plaintiffs were injured by their reliance on Defendant Lyons’ counsel and his failure to disclose the fair market value of their interests.
This Court has previously ruled on the very issue presented by this appeal. In Theriault v. A.H. Robins Co., 108 Idaho 303, 698 P.2d 365 (1985), the appellant appealed from the district court’s decision to grant respondent’s motion for summary judgment on the basis of I.C. § 5-219(4). The appellant argued that summary judgment was improper because a genuine issue of material fact existed as to whether the respondent was guilty of fraudulent concealment. There were no affidavits or other evidentiary materials in the record to support the appellant’s generalized averments.
The Theriault Court began its analysis by quoting from Johnson v. Gorton, 94 Idaho 595, 598, 495 P.2d 1, 4 (1972):
Summary judgment is proper if the evidence before the court on the motion would warrant a directed verdict if the case were to go to trial. When the moving party presents materials which would entitle him to a directed verdict if presented at trial, the responding party may not hold back his evidence; he must present sufficient materials to establish a *779triable issue. Those materials must set forth the facts with particularity; for if general averments were sufficient the summary judgment procedure would lose its utility. The requirement of specificity is underscored in cases where the moving defendant has established, prima facie, a defense grounded on the statute of limitations.
Theriault, 108 Idaho at 306, 698 P.2d at 368 (emphasis in original). The Court then went on to hold:
As we noted above, this requirement of specificity is underscored where, as here, the other party has established a prima facie defense on the statute of limitations. In addition, I.R.C.P. 9(b) requires that when a party is alleging fraud, the circumstances constituting the fraud must be stated with particularity.
Theriault has failed to produce any evidence of conduct by Robins designed to conceal facts in an effort to hinder her prosecuting her claim; ...
Theriault, 108 Idaho at 307, 698 P.2d at 369.
Paragraph 28 of the first amended complaint states:
28. Plaintiffs first learned of the agreement between Defendant Lyons and David Luke in April of 1977. Through a relative, Christopher Luke, they contacted a Barrister from Cranbrook, B.C., Canada, named Harvey L. Gansner. Mr. Gansner agreed to investigate the matter for the Chiqui heirs. He contacted Defendant Lyons on April 14, 1977. Defendant Lyons responded on April 28, 1977. Copies of these letters are attached hereto and incorporated herein as Exhibits “W” and “X” respectively.
Paragraph 29 of the first amended complaint states:
29. Being unfamiliar with United States law, Mr. Gansner referred the matter to Defendant Talbot Shelton, Jr. of Bonners Ferry, Idaho. Defendant Shelton agreed to pursue the matter for the Chiqui heirs. On December 13, 1978 Mr. Gansner transferred his file to Defendant Shelton. See Exhibits “Y” and “Z” attached hereto and incorporated herein by reference.
The first and third causes of action of the verified complaint, which is the only factual basis for the appellant’s fraud allegations, incorporate by reference both of these paragraphs. When read in conjunction with the first and third causes of action, they trigger the key language of I.C. § 5-219(4), to wit:
[Wjhen the fact of damage has, for the purpose of escaping responsibility therefor, been fraudulently and knowingly concealed from the injured party by an alleged wrongdoer standing at the time of the wrongful act, neglect or breach in a professional or commercial relationship with the injured party, the same shall be deemed to accrue when the injured party knows or in the exercise of reasonable care should have been put on inquiry regarding the condition of matter complained of.....
(Emphasis added.) In other words, the Canadian barrister representing the plaintiffs was aware, or, in the exercise of reasonable care, should have been put on reasonable inquiry of the double representation by Lyons.
The foregoing knowledge by the plaintiff-appellants of Lyons’ dual representation on or before the 13th day of December, 1978, as set forth in paragraph 29 of the verified complaint, established a “prima facie” defense grounded in the statute of limitations. See Theriault, 108 Idaho at 306, 698 P.2d at 368. The burden then shifted, as Theriault dictates, to the plaintiff-appellants to come forward with sufficient contravening data to create a genuine issue of fact.
Certainly, the appellant-heir’s complaint would have been sufficient to withstand a 12(b)(6) motion, but based on the controlling Theriault opinion, I would hold that it cannot withstand the respondent’s motion for summary judgment. This Court’s opinion has stripped away the appellants’ burden of establishing the nine elements of fraud, and in the process, the summary *780judgment procedure in this case has lost its utility.
For the above reasons, I dissent.