Wysocki v. Johnson
18 N.E.3d 600
| Ind. | 2014Background
- Wysockis sued Johnsons for fraud for failing to disclose defects on the Residential Real Estate Sales Disclosure Form.
- Trial court awarded compensatory damages of $13,805.95 but denied CVRA costs, attorney fees, and exemplary damages.
- Court relied on common-law fraudulent misrepresentation rather than CVRA liability in its judgment.
- On remand, trial court found defects were within the Johnsons' actual knowledge, reaffirming the denial of CVRA relief.
- Court of Appeals reversed on the CVRA issue; this Court granted transfer to clarify CVRA liability, but affirmed the trial court’s discretion.
- Pleadings pleaded multiple theories (common-law fraud and CVRA) with relief sought broadly, not limited to the CVRA.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| May trial court decline CVRA relief when alternative remedies exist? | Wysocki argues CVRA liability is mandatory if deception is proven. | Johnsons contend CVRA should apply where deception is proven, including costs and fees. | Trial court within discretion to award common-law damages and deny CVRA. |
| Does CVRA require a bright-line rule that every knowing misrepresentation triggers CVRA liability? | Wysocki seeks bright-line CVRA liability for any knowing misrepresentation. | Johnsons argue CVRA liability is not automatic and depends on discretion and pleadings. | Court rejects bright-line rule; discretion remains with the trial court. |
| Must CVRA liability be tied to a criminal conviction? | Conviction is not required; CVRA can attach via preponderance of the evidence. | Conviction or charging status should be dispositive. | No conviction required; liability proven by civil preponderance, not criminal standard. |
| Does pleading multiple theories affect the availability of CVRA relief? | Plaintiffs should be able to recover under CVRA if proven, regardless of other theories. | Defendant argues alternative theories limit CVRA exposure unless proven. | Court may award compensatory damages under common-law while declining CVRA relief when pleadings are alternative. |
| Is the award of costs/attorney fees under CVRA mandatory if CVRA relief is denied? | CVRA costs/fees should follow if CVRA is pleaded and proven. | Costs/fees are mandatory only if CVRA liability is imposed. | Costs/attorney fees are mandatory when CVRA liability is imposed; otherwise not. |
Key Cases Cited
- Johnson v. Wysocki, 990 N.E.2d 456 (Ind. 2013) (discusses CVRA and actual knowledge in disclosure fraud)
- Kesling v. Hubler Nissan, Inc., 997 N.E.2d 327 (Ind.2013) (criminal deception elements proven by preponderance; no conviction required)
- Klinker v. First Merchants Bank, N.A., 964 N.E.2d 190 (Ind.2012) (no conviction required; CVRA liability proved by preponderance)
- White v. Ind. Realty Assocs. II, 555 N.E.2d 454 (Ind.1990) (criminal conviction not required for CVRA recovery; preponderance standard)
- Burgett v. Haynes, 572 N.E.2d 1296 (Ind.Ct.App.1991) (CVRA costs/fees framework; discretionary nature of exemplary damages)
- Browning v. Walters, 616 N.E.2d 1040 (Ind.Ct.App.1993) (costs and attorney fees under CVRA; appetite for exemplary damages)