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Umphrey v. Sprinkel
682 P.2d 1247
Idaho
1983
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*1 Betty Umphrey, Wallace UMPHREY and wife; Horn;

husband Diane M. Stoke, Dorothy

John E. C. Stoke and wife;

husband E. Rower and Don Rower, wife;

Irene husband and Gene Morgan Morgan,

F. hus Donna J. wife; Wayne Frovarp

band and H. wife; Frovarp,

Thelma husband and Evans, Jr.,

Fred L. and Vivian M. Ev

ans, wife, husband and Plaintiffs-Re

spondents,

Gary R. and Kathleen A. SPRINKEL wife;

Sprinkel, husband and Northwest Inc., Estate, Defendants-Appel

Real

lants.

Nos. 13601.

Supreme Court Idaho.

Oct. 1983. Rehearing Dec.

On *3 d’Alene, Brown, for de-

R. Romer Coeur Sprinkels. fendants-appellants Smith, Sidney & E. Smith of McCabe Hosack, d’Alene, and G. Martin Web- Coeur Lukins, Shine, Annis, McKay, Van er Rein, Wash., Spokane, for defend- Martin & ant-appellant Real Estate. Northwest L. Michael Verbillis and Norman Gis- J. sel, d’Alene, plaintiffs-respon- for Coeur Umphrey, et dents al. Wilde, d’Alene, plain-

Larry A. Coeur tiffs-respondents Hannas.

SHEPARD, Justice. appeal a This is an for fraudu- defendants-appellants against made in the sale of misrepresentations lent part, reverse property. We affirm real remand. part, Gary defendant-appellant interest in a a one-half Sprinkel purchased acres, known as of land about parcel His father and Mountain Ranch. Lone purchasers of the other mother were property was a interest. On one-half been drilled as an Originally it had well. feet, it depth but never to a oil well oil, to a it was converted any produced shortly before 400 feet well at about water bought property. At Sprinkels purchase Edward Sprinkels’ time of land adjoining piece Brown owned pursu- using from the well water in 1961 right to him to a sold ant water the then gave owners Lone Mountain Ranch. REPA up on the idea of a master sole system. residence on Lone Sprinkel Mountain water next a formulated also used water The plan, Ranch well. apparently without consultation with supplied at well, well that time no other users or existing the two users of put residence, uses. the surround- system a water for the Lone Mountain acres, ten ing rights using “all ... water tracts the well on property, his appurtenant system used thereon or thereto” were give water he would then to REPA Antrims, operate. deeded to the who also obtained Expansion of the capaci- well’s house, beyond ty existing an easement for access to the well required two users property casing well itself retained that the well perforated. REPA Sprinkels. Approximately two members possibility, discussed the re- but March, years accompanying jected later that land and it in meeting because Hannas, rights potential liability sold to one water existing users *4 in plaintiffs perforation destroyed of the this action. The extent the well if the well’s right capacity. Sprinkel retained the Sprinkels began of the water Meanwhile in- well, any, conveyance stalling system using in the if after that a water the well. At directly existing and not at issue in this trial he contended that unclear the two had one-third in lawsuit. users interests the well’s only, while equipment rights he retained all Sprinkel bought Gary In defendant to the water in well. shares in defendant Real some Northwest Company. Sprinkel attempted grant Later he his Estate obtained had each license purchasers associate broker’s and one-half own- of the user tracts a Vzoth Estate, Inc., ership water, in as Northwest Real interest in the well in the event that posts as an accept well officer director REPA did not A well. water 1970’s, company. early system eventually In the be- constructed, he was awith gan separate the Lone pump market Mountain Ranch from and inferior to that property. Lone Mountain Ranch sub- existing was used two water users. into 40-acre tracts” divided “investment REPA did not take over the well and even- ten-acre “user tracts” and listed for tually Sprinkel’s disbanded. At trial evi- Sprinkel’s prospec- purportedly with sale Northwest. dence plain- showed that the stated that user tracts would have using tus tiffs were more water than were good year-round road” “domestic “a households in surrounding communities. supplied prior evidence, REPA water ... available Plaintiffs’ however, indicated that 1st, 1973.” to June there was insufficient daily, water to bathe toilets, to flush their to wash dishes and acronym Ramsey Envi- REPA is an clothes, provide or to water for their trees Protection Association. It was ronmental gardens. Their evidence also showed up land of local owners desirous of made only that when two households used the securing supply a for the water area. well, water had be rationed if used to in part was formed the latter REPA gardens. water lawns and incorporated March, 1972, in and was Gary Sprinkel moving plaintiffs as its purchased with force all “user tracts” president. The original first idea eight within the first months of 1973. large a supply purchases water to area of some 5000 These apparently were land sale September, 1972, Sprink- to 6000 acres. requiring continuing contracts payments to el a letter from Sprinkel. received the Farmers Home bought Plaintiffs-Hannas three informing tracts, Administration him totalling acres, investment, that REPA as an any grants would not receive or prior federal in purchase addition to their of the apply any loans. No effort was made to surrounding purchased house and ten acres and, date, agency federal other from the Antrims. Plaintiffs-Rowers bought District, Plaintiffs-Morgans acres. are read a limited number bought acres. The other five five families of stock the start of instructions before plaintiffs bought who are ten acres each. proceedings. Instruction No. stated that sales, Sprinkel of these some acted di- party asserting the truth of a fact must agent; others, rectly as the real estate proposition probably show that the is more employees of various Northwest acted as not, preponderance true than a of the evi- agents. purchased Plaintiff-Horn her tract objected dence instruction. Defendants mother, employee with her of another grounds on the that in instruction a company, acting as real estate the realtor. proof fraud case the burden of is clear and convincing The court for road evidence. overruled Sprinkel contracted construction objection May grounds or June of that this the contractor on the topsoil twelve from the stripped inches preliminary instruction to orient the jury roadway replaced area and it designated and that he them at would instruct (rock pit varying inches of run with six of the close trial that the elements of fraud up than % of an inch to 12 size from less require convincing clear and evidence. diameter). The contractor testi- inches This was done Instruction No. 10. In- county specifications required six fied that repeated struction No. 7 was not at the rock, Sprinkel of crushed but inches more close trial. did that further work. not authorize times defendants moved several Sprinkel, contend that All suit, claiming it was dismissal barred *5 acting his di- agents of Northwest under year the two of limitations for statute representations rection, made fraudulent malpractice rather than professional the adequacy of the road and water the about year This three limit for fraud. motion August filed supply. The Hannas suit on Sprinkel, denied. the court was As to be- 6, 1975, plaintiffs remainder of the and the that, selling his lieved because he was own days a later. On the 16th of filed suit few malpractice property, stat- professional the against August, Sprinkels the filed suit the Northwest apply ute did to him. was Hannas, seeking of con- forfeiture the land Sprinkel and in- found to be too tied to payments, to make a notice tract for failure conduct, continuing in a course volved 1, having July been on sent forfeiture as the motion to and the court denied 1975, October, the cases were 1975. Northwest as well. consolidated. objected to Instruction Both defendants of defendant-Northwest Upon motion jury they the could No. which told Estate, court the the ordered that Real “special consequential” damages segregated from the fore- be fraud cases fraud, asserting they defendants if found suit, the former to tried with be closure with the conflicted out- that the instruction pretrial en- An extensive order was first. damages. The court over- of-pocket rule of 18, 1979, framing April the admitted tered that grounds the the objection this on ruled facts, as as well the exhibits disputed and damages to to com- plaintiffs were entitled to which were and those there admitted 2nd, road granted repair of the and May pensate them for the objections. On working. to exclude from the fraud keep system motion North- Hanna’s water notice of forfeiture evidence Sprinkel objected case Instruc- and also west grounds that the Sprinkel, on the sent 24A, jury prop- No. told the tion injecting and segregated that trials was element of er nonperformance into the trial the issue price contract and the difference between deciding jury unduly confuse would use they could actual value and that fraud. the issue of repair determining reasonable cost Appellants asserted that the difference. jury on began with selection trial land,” repairs to “raw and no can be made In the First Judicial November that duplicative this instruction of In- actually was submitted to the court were those objection struction No. 24. This over- during made were not a deliberation ruled without comment. Commenting on the diffi reconstruction. attorneys distinguishing culty com have argument, closing attorney his pensatory punitive damages, the court proposed other than the Hannas entirely proper said he that believed it jury they away profit take to consider the calculations to case Sprinkel from imposing puni- a means as “clarify purpose the verdict not for the tive suggested He con- impeaching verdict.” court then sider profit Sprinkel on obtained compensatory category only in the left subdivision, entire Lone Mountain Ranch price between difference contract actu including parcels the 40-acre investment value, consequential damages. al All not at attorney issue in this case. The damages, including objected Northwest other classification of grounds fees, parcels supplied the 40-acre out-of-pocket attorney’s “person were not to with part (which water and were not of this suit. mental” court charac The court objection, stating overruled the anguish”), and the lh terized “mental up jury “it’s remember the evi- fees, contingency attorney’s were shifted dence.” closing argument, In his North- punitive damage heading, under the as the west’s attorney did not issue of address the support was “clear” evidence those ele punitive damages. Sprinkel’s attorney did designated “puni The amount ments. respond claim, punitive damage but ($6,812.50each) damages, tive” the court argument made concerning no the 40-acre clearly attempt determined was to take parcels. investment Sprinkel’s profit some the Lone Mountain The total subdivision. amount of 8,1979,

On December jury back came changed. with awarded was not On unanimous verdict for each plaintiffs. request March entered At the the court another of Northwest’s counsel, polled. reducing $14,- recovery by The court order Hanna’s then asked all to remain in the had which amount the awarded as *6 room attorneys while the examined the ver- anticipated profits. loss of This reduction dict objections forms. No were made. On longer appeal. is no at issue on 12th, December the moved to Defendants moved for a clarify” “amend and the verdict based grounds and a N.O.V. new trial on the that jurors’ affidavits. Attached affi- to those by the the action was barred statute of davits computations jur- were used the again limitations. This motion was denied. ors in arriving at their verdict. All these forfeiture, In the action for which was identical, of exception with the one abeyance cases, pending held the fraud juror computations whose slightly. varied summary judgment the court entered plaintiff affidavits also stated that Sprinkel against 18, 1980, Hanna was Hanna on March awarded an additional sum for profits. loss of anticipated thereby declaring the contract to be forfeit- ed. 20, 1979, On December entered

an amending order verdict Sprinkel ap- Defendants and Northwest giving judgment plain- in favor of all the peal, asserting assignments of numerous jointly severally against tiffs defend- error. ants. face The court believed from the of

the verdict that the as to confused I. opposed what constituted Appellants punitive argue first as real had that estate that the agents spent a time in considerable amount of and brokers are covered calculating professional malpractice The calculations statute of limita- 706 §

tions, 5-219(4), performance professional that I.C. this statute of service. of with two-year applies its limitation rather part of We decline that fraud is to hold fraud, than the statute of limitations for ordinary profes- of performance of course § 5-218(4), three-year I.C. with its limit and sional Hence we believe that services. upon discovery of the accrual fraud. We scope does of fraud fall within disagree. particularly statute. true since the This is itself fraud in a statute mentions different Assuming, deciding, without that context, by providing that fraudulent con- agents profes real and brokers estate are wrongful of act” shall cealment “the toll § 5-219(4), purpose sionals for the of I.C. statute To hold of limitations. that hold that an nevertheless we action for fraud, appel- “wrongful act” includes misrepresentation fraudulent does not fall request, produce lants an anomalous would protective pro within the embrace of the legislature result that could not have malpractice statute. fessional As this i.e., intended, underlying fraud that before, gist Court has stated of a “[t]he limitations, would not toll the statute malpractice negligence action is ...” but fraudulent concealment Howard, 412, 416, Trimming v. 52 Idaho gov- principal fraud would rule do so. The (1932). An 16 P.2d 662 action for erning give statutory interpretation is fraud or deceit involves more than mere intent. Gavica v. legislature’s to the effect action, tort negligence. While it is a it is Hanson, (1980); 101 P.2d 861 Idaho 608 tort, more in the nature of an intentional 87, 481 Dooley, v. Summers 94 Idaho P.2d speaker knowledge requiring that the have (1971). construing a statute this falsity representation’s ignorance used, truth, may language its as well as intent the Court examine See Faw v. representation upon. relied interpreta- proposed reasonableness of Greenwood, 387, 613 101 Idaho P.2d 1338 tions, policy behind the statutes. King, (1980); Smith 100 Idaho Hanson, supra; Gavica v. Summers v. (1979); Siqueiros, Mitchell v. P.2d Dooley, supra. Language of a particular (1978); gener see in a section need not be viewed vacuum. ally W. Prosser, Handbook the Law applicable And all sections statutes must Torts, Ed.1971). (4th at 683-736 addi together be construed so as determine tion, plaintiff prove must all elements Magnuson v. Ida- legislature’s intent. convincing op clear evidence as Comm’n, ho State Tax posed stringent preponderance less (1976). P.2d ordinary standard used in the evidence Greenwood, negligence cases. Faw v. su therefore, hold, We action Hence, pra; King, supra. Smith v. we fraud or is covered the statute deceit *7 fraud that an action for and deceit believe § fraud, 5-218(4), of limitations for I.C. purview malpractice of a is not within the limitations rather than statute of for the action. § 5-219(4). professional malpractice, I.C. decision, legislature policy The has made a Neither do we believe that the approve, provide of which we to accrual legislature produce intended to a different upon of the cause of for fraud dis action by language choice of I.C. result its covery constituting the the facts fraud. § portion 5-219(4). pertinent of that The upon realization This is founded the ‘professional term provides, statute “[t]he fraud, an intentional and often orchestrat malpractice’ used herein refers as scheme, ordinarily ed more difficult to perform wrongful acts or omissions the negligent injury. discover than a Our hold ance While professional services ...” legisla ing today is consistent with misrepresentations conced fraudulent are ture’s clear to afford victims of intent by edly wrongful, the statute to be covered more to discover the course fraud time which must be in the acts or omissions jury’s The exploita- contingency attorney’s led fees. machinations which to their lumped damages tion. verdict all of these into damage compensatory category except brought These actions all were within $6,812.50 each under the years plaintiffs purchased their three after punitive. examining category After any lots. of dis- Under conceivable date affidavits, the court shifted the fraud, covery of the defendants statute out-of-pocket fees, personal attorney’s of limitations has not run on their claims. § 5-218(4). damages, contingen- and mental and the Vs I.C. cy punitive damage fee amount into the

II. plain- category. The total amount due each by major issue second raised changed tiff was not this action. appellants propriety concerns the parties agree rule in that the shifting

trial certain ele court’s action may Idaho is consider ments from the that courts affidavits was, damage category punitive damage clarify order to what the verdict appellants argue category. Initially that it impeach but not to the verdict. Glennon was error for the trial to use court 732, (1932); Fisher, 51 v. 10 P.2d 294 jurors’ considering affidavits in the amount Dist. v. Drainage No. 2 Extension Ditch However, appellants awarded. Co., (1919). P. 32 Idaho themselves relied the same affidavits state, may such be con affidavits have Hanna reduced discharged, sidered after the has been (a $14,800 longer matter no at issue on this Drainage here. was done Disk No. 2 v. appeal), as it was awarded for Hanna’s Co., supra. these Extension Ditch While expectancy profits. Appellants in lost can may long not filed affidavits after use affidavits below for their own dismissed, jury has been Evans v. David purpose advantage, and to their own then son, (1937), P.2d such 57 Idaho argue appeal against use those here, not the case these affidavits State, affidavits. 105 Idaho Masters Cf. only days after the filed few (1983); Heckman returned its verdict. Ranches, State, Inc. v. 99 Idaho (1979). P.2d 540 argue Appellants trial Turning to appellants the substance of verdict, respon impeached while argument, we find that the trial court’s merely dents assert that the court’s action action apparently presents below an issue agree clarified verdict. We with impression, of first as we have been cited Guiding latter contention. our decision is to no cases from any jurisdiction this or following language of this Court approving, disapproving, or even mention- Fisher, at supra, Glennon v. ing judge. such action a trial Affida- 10 P.2d 295: at vits submitted all twelve stated “Appellants earnestly submit that a divided the to each juror may permitted impeach not be plaintiff into categories: several different happened his verdict. That is not what (1) purchase the difference between the any impeach, attempt here. Before price land, (2) and the actual value of the there must be a There verdict rendered. fees, (3) out-of-pocket attorney’s conse- positive must be a declaration quential damages (representing amounts *8 juror Here, qualify seeks to or revoke. expended repair to the road and water jurors verdict, the returned a form of (4) system), personal and mental (which honestly believing expressed it deci- their the court as denominated mental sion, (5) anguish), punitive signally whereas it do damages (represent- failed to so. attempt ing duty, ap- to remove of It the some defend- was court’s when so scheme), (6) profit from the prised, ants’ Vs to cause such correction as would 708 the paper

enable filed the to reflect true elements of from improper the to Speaking verdict. directly, this court proper category. the worthy It is of note Drainage District v. No. 2 Extension changed that the court none of those indi- Co., 847, Ditch 32 Ida. 182 said Pac. they vidual amounts as were shifted from page at 325: another, one category to nor was there change question impeaching

‘This is not a in the final a awarded each verdict, correcting plaintiff. but it to conform to The court’s action thus seems was actually upon what jury’s found and intended to less the intrusive verdict than by be returned jury. approved by the The rule is that this Court in prior two may permit the court jury fortify the to Drainage cases. Dist. No. 2 v. Exten- Co., its verdict or to by show the affidavits of supra, sion approved Ditch this Court jurors they the the verdict which found amending the verdict to increase the dam- return, intended may to and this ages to awarded conform to the intent ” done after discharged.’ have been jury. Fisher, the In Glennon v. supra, approved amending this Court the verdict Here, the jurors affidavits of all twelve defendants, against from each of four $125 that a clearly show jury unanimous intend- joint to liability. $500 severable compensate ed the for the enu- those the two cases defendants’ financial damages they merated had suffered at the liability greatly the was increased. Under hands defendants. items Those facts of instant case the the defendants’ the court shifted away from Hence, liability change. total did not we damages into the punitive realm of dam- unique believe that under circumstanc- ages could properly not be denominated as case, by the court es did not err compensatory damages under laws of verdict, clarifying except amending given. this state or under the instructions (see VI, infra). as set forth herein section only method The which court could jury’s effectuate intent to award dam-

ages injuries for those include them III. punitive damages. Appellants next assert improperly excluded evidence of began

This trial on November notice of that had been sent and a verdict forfeiture was not until De- returned 8,1979. plaintiff disagree. Hanna. We We first dispute cember consumed six- trials for fraud severed days teen seventeen note that the time and trial resulted a trial action motion transcript over 2750 the foreclosure Northwest, pages. As the court did receive the defendant defendant Sprinkel objection. Appellants motion amend the after the no verdict until made discharged, that, judge although chose to claim the actions were tried salvage this substantial of time separately, investment the forfeiture should have been jurors litigants calculating effort considered in altering the disagree. verdict to conform to unan- fraud. We intent jurors. imous Because In the recent case of Nelson v. Arm- discharged, had been the court did not (1978), strong, 99 Idaho P.2d choice, preferable, have the which we deem that, unanimously in an this Court held sending back to correct its own a joined action in which fraud claim is with verdict, Johnson, as was done in Brown v. action, deficiency the trial court “should (1970). 2d When Utah P.2d 942 [plaintiff’s] damages calculate verdict, they returned their mis- regard unpaid fraud without balance takenly, that it re- honestly, but believed Id., contract.” at decision, but, shown flected their Bangart, P.2d at Accord Lamb affidavits, actually their it did not. (Utah 1974). Hence, the no- tice of was irrelevant to Hanna’s power court was within to make forfeiture its action moving for fraud and to therefor the ministerial correction of certain

709 properly and was Any excluded. deficien- V. in the cies amount due the seller are be challenges Appellant Sprinkel also separate calculated and in a considered ac- by of offered sufficiency the evidence

tion, here, counterclaim, as or in a as in carry respondent Horn to her burden Diane Armstrong, v. supra. Nelson on the principally relies proof. Sprinkel of realtor mother acted as

fact that Horn’s pur in which Horn for the transaction IV. Ranch. parcel of Lone Mountain chased a appellant Sprinkel argues Next representations The record shows that by giving that trial court erred an were supply the road and water about jury, objection instruction to the his over at of by agent directly to Horn made beginning trial, which stated that spoke that she defendant Northwest and party proof with the burden of had to is There also Sprinkel about water. carry by that preponderance burden a of mother, acting as her Horn's evidence that plaintiff the evidence. The in a case fraud misrepresentations agent, received proving of all bears burden of elements to re passed them on the defendants by and convincing fraud clear evidence. could found spondent have Horn. Greenwood, v. 387, made, Faw 101 Idaho 613 that representations were that those (1980); false, 1338 King, P.2d Smith in they v. 100 Idaho defendants were that 331, (1979). 597 P.2d 217 “The rely At the of them. close tended for Horn evidence, proven the trial has correctly court and issue as to whether fraud been specifically convincing for the instructed clear and evidence is each ap of fact. element of determination trier On proved by fraud must be clear peal that determination will be reversed convincing Sprinkel argues evidence. substantial, supported competent, where that these two instructions served to con though conflicting v. evidence.” Faw the jury. disagree. fuse We 387, 389, Greenwood, P.2d 101 Idaho 613 While (1980), King, instructions are con v. quoting Smith tradictory 331, 334, material P.2d matters would re Idaho reversal, quire (1979). supporting Yacht evidence Club Ser Substantial Sales & found, vice, be having it will not Inc. v. First the verdict been National Bank North of Idaho, reversed. (1980), 623 P.2d 464 we find no such contradiction here. The merely gave court a preliminary instruction VI. to the after it impaneled was first arguments all re Appellants’ final familiarize the with their as role argue They of late to the issue triers of fact. This was followed a month consequential damages cannot first specific very later a instruction howon compensatory damages and as awarded weigh they evidence had the sole measure Thus,

just gave heard. general the court ac difference between the ground then spe rules and instructed more purchase value the land tual cifically stringent that the more burden conse price. These awarded proof applied nine essential elements by the quential borne relate costs fraud. have Other courts concluded plaintiffs maintaining repairing general that such instructions followed v. system. road the water Jensen specific more instructions on the burden of Bledsoe, (1979), error, proof do not constitute reversible this Court concluded that trial given even when both are at the close properly having included the cost well Saxton, the evidence. 243 Ga. sewage system Freeman v. disposal drilled and install (1979); part plaintiff’s 255 S.E.2d 28 out-of-pocket ed Finefrock Carney, (Okl.1953). mis- expenses P.2d 744 defendant’s fraudulent *10 710

representations. consequential involving The relatively unsophisti- dam- viewed as ages here are no They represent different. purchasers property cated of real who were expenditures plaintiffs money deliberately scheme, led into a fraudulent attempting bring and labor in the road profit. jury justi- conducted for up represented to the standard it was to be. taking in fied into account the defendants’ effect, expenditures these increased the property entire scheme to sell at Lone purchase price plaintiffs paid and Ranch, Mountain which was only not their properly therefore were awarded as com- area, just subdivision in the rather than pensatory damages as an element of the portions fraudulent of the scheme at issue purchase price difference between the deterring this suit. The chances of fu- property. Indeed, the actual value of their accordingly materially ture misconduct are reported Professor Prosser has that in the Clark, Dodge, increased. Boise Inc. v. su- minority of states which follow the out-of- pra; Stolworthy, supra. Cox v. pocket damage cases, remedy in fraud Idaho, recovery consequential does It is well established this Prosser, permitted. is W. Hand- punitive damages may that state be award Torts, (4th book on the Law at 735 ed. when ed the defendant has committed 1971). Co., Jolley Puregro supra; fraud. v. appellants argue Next that the court Clark, Dodge, supra. Boise Inc. v. Here a permitted Umphrey’s should not have coun- misrepre unanimous found fraudulent argue jury, objection, sel to over Hence, punitive damages sentations. are Sprinkel’s profit on the entire Lone Moun- appropriate. plaintiffs The various tain Ranch away, should be taken rather awarded from merely profit parcels than on the ten at $4,200 $14,000 punitive dam over Appellants issue the lawsuit. contend $21,000 $30,000.1 In ages Jolley v. argument this caused the to un- Co., supra, and Puregro Cox v. Stolwor duly inflate the thy, supra, it was stated that when exem justified, plary punitive damages are general purpose primary plaintiffs should at least receive the cost of punitive damages an award for behind is to fees, fees, expert litiga attorneys witness happening again deter similar conduct from costs, expenditures made tion and other Hanson, in the future. v. 101 Ida Gavica plaintiffs. Here it is clear from the (1980); Pureg ho P.2d 861 Jolley 608 v. plaintiffs did award affidavits that the Co., (1972); P.2d ro However, attorneys’ additional their fees. Stolworthy, Cox v. 94 Idaho 496 P.2d in certain exemplary can be made (1972). exemplary A determination of Jolley Puregro circumstances. v. limited damages requires an examination of the Co., Stolworthy, supra.2 supra; Cox v. total circumstances of the case. Boise of those situations which additional Clark, 902; One Dodge, Inc. v. appropriate are is when the defend (1969). awards A defendant’s financial P.2d 551 prac engaged deceptive business determining ant may be considered in status danger operated profit posing any tices damage award will have whether general public. Dodge, Inc. v. Boise Stolworthy, effect. v. su- deterrent Cox Clark, supra? Stolworthy, importantly, supra; case could Cox pra. More awards to the can be Frovarp 1. The ultimate 5,609.00 21,618.50 27,227.50 6,200.00 21,815.50 Evans 28,015.50 as follows: summarized $189,748.10. for a total 14,822.00 45,489.15 60,311.15 Hanna Compensatory Plaintiff Punitive Total Damages Damages Damages Umphrey 6,200.00 21,815.50 28,015.50 5,650.00 21,632.50 Horn 27,282.50 Hanna, damage punitive award to as not- Stoke 5,556.80 21,534.50 27,091.30 $14,800. before, was reduced ed 5,200.00 21,482.50 Rower 26,682.50 Stolworthy, supra, Although was recent- Cox v. 4,262.50 21,170.80 25,433.30 Morgan out-of-pocket practice falsely category believe

We defendant’s ed in its of conse- representing quential an amount building lots would be of between $1,550 $1,500 *11 supplied per plaintiff, adequate with and access which water of the squarely deceptive amount each had advanced falls within the ambit begin attorney’s fees to practices in for lawsuit. which award of business According computations in punitive set out damages is authorized. additional affidavits, for jurors’ those advances argued remaining question attorney’s incorporated fees were also into is appellants whether those dam additional figure plaintiff, their final for each from ages testimony are excessive. The showed figure computed then an plaintiffs, these of rather all modest attorney’s additional one-third add-on for means, were induced to to these move lots Thus, attorney’s fees. fees award was country, only they in to find that had duplicative re- improperly and should be inadequate They water. could not flush duced. days gar toilets for their at a time. Their addition, $6,500 trees, added and fruit typical dens amenities of plaintiff to the award for each in country living, the conse withered and from lack died quential damages category Having investments, for “mental” water. made their damages, although they could not had not been afford to move elsewhere instructed that issue the court. The unhappy had to remain under these general living recovery rule had conditions. cannot be Given the nature of the anguish for mental in As injury fraud cases. purchasers inflicted on these and the § 141(f) (1943): stated in C.J.S. 37 Fraud that the or possibility defendants someone position, else defendants’ with substan “[Rjecovery cannot be had an action parcels of land to tial subdivide injury plaintiff’s for for feelings deceit state, might misrepresent feel tempted to public disgrace incurred through be parcels water available for their ing through representa deceived false injury pur similar on other innocent inflict tions, anxiety, worry, or for and harass chasers, exemplary damage the additional arising fraud, annoy ment or from were not See Boise awards excessive. inconvenience.” ance or Clark, Dodge, supra, Inc. v. which this jurisdictions A follow a number this or upheld jury’s puni a of total Court See, Slonim, e.g., similar rule. Moore v. $12,500 damages compensatory tive (D.C.Conn.), 524 F.Supp. affd, 426 562 F.2d $2,050 case, damages of in a similar al Cir.1977) (2nd (damages 38 for dis- mental though day-to-day living conditions of ordinarily tress available in not a cause nearly injured parties were as dra not fraud); action for business Kantor v. Com- matically puni affected. Here none Corp., F.Supp. et Press Books 187 321 damage times awards were six tive (S.D.N.Y.1960) (damages for an- mental award, Dodge. as in Boise fraud); guish not recoverable in action for Hence, damage punitive while these Brown, Sierra National Bank v. 18 Cal. insubstantial, are far from awards App.3d 98, Cal.Rptr. (1971)(mental 95 742 be characterized as excessive. cannot an distress element of however, agree, fraud); 1, defendants- Ziegler, We with the v. 291 Chandler 88 Colo. (instruction (1930) appellants’ allowing contention that certain P. 822 addition- jury have been annoyance awarded al and inconven- Specifical- error); duplicated inappropriate. or are ience to constitute held reversible Crockett, 45, record includ- 51 Hawaii P.2d ly, the indicates Ellis v. 451 Verdes, ly part (Cheney general Palos tive and not to the overruled v. law 661), punitive damages such action P.2d announced in Cox v. Stolwor- only puni- thy, supra, to the measure of allowable and reiterated herein. related fraud, of the court below is af- (1969)(in may cases of there except respects in all its award of firmed recovery anguish no for mental or humilia- regard damages, and in that is reversed. inflicted); intentionally tion not Harsche remand, the trial court is instructed to (1953) On 699, 61 N.W.2d 265 Czyz, 157 Neb. plaintiffs-respondents remitti- submit fraud, (in permit- instruction an action for reducing respective their awards tur anguish ting recovery for mental and hum- $8,000 $8,050, applies, or whichever either error). prejudicial iliation constituted $1,550 $1,500 consisting attributa- Rouse, v. Max & Hatfield improperly attorney fees which were ble Northwest, Sons $6,500 plus erroneously al- duplicated, (1980), this Court set aside P.2d *12 damages. If for mental such remit- lowed suffering, for mental award of accepted by plaintiffs-respon- is not titur of Contracts the Restatement quoting from dents, is to set aside the the court directed § (1932): 341 judgment and order a new and verdicts contract, of “In actions for breach accept- the remittitur is trial. In the event compensa- given be as damages will not damages, judgment of ed on the issue suffering, except where tion for mental will stand affirmed. or reckless and the breach was wanton respondents. attorney to No fees Costs where it was bodily harm and caused any party. a contract breach of wanton or reckless such a char- performance to render C.J., DONALDSON, concurs. had reason the defendant acter that the contract was made know when McFADDEN, (Ret.), concurs in the J. suffering mental would cause the breach result. pecuniary other than mere for reasons added.) (Emphasis loss.” BISTLINE, Justice, concurring part in concurring judgment. in the v. Max Rouse & 3 of footnote Hatfield Northwest, Idaho at 846- supra, 100 Sons opinion than where the Court’s Other 950-951, 847, Court stated P.2d at 606 approval v. Max Rouse cites with Hatfield dam- of whether “the determination 840, Inc., Sons, 606 P.2d 944 & allowable distress are ages for emotional which, view, (1980), my in opinion an recovery for of the measure of part rampant with error result-oriented analysis similar follow an fraud would Verdes, 897, 104 (Cheney v. Palos con- for breach of follow ... the one we J., (1983) Bistline, specially suffering mental if such tract.” Even today’s opinion concurring), I concur damages in this kind of permissible well, although judgment1 as in the concur v. Max case, according to both affirming authority is my view there Hatfield the Restate- instance, Northwest See, Rouse & Sons Gallick v. Bal en toto. case, it in that language approved Co., 108, 372 ment U.S. & Ohio Railroad timore court duty (1963); the trial 659, have been L.Ed.2d 618 Atlantic would 83 S.Ct. Stevedores, jury that such Inc. v. Ellerman instruct & Gulf 780, Lines, Ltd., “such dam- only when 369 U.S. 82 S.Ct. allowable would (1962); of the contemplation Airlines L.Ed.2d United within ages were Cir.1964). (9th Wiener, On the con- 335 F.2d 379 they formed time at the parties dis validity damage for emotional given to instruction such No tract.” tress, recent case of Schultz v. see the here. $8,000 $8,500, plain- as to those and that understanding that the my 1. It is so, judgments affirmed, will be do not do their provided tiffs who that each is court the district ordered on the issue of aside and a new trial set with the district plaintiffs files only. in amounts remittiturs agreement to submit Co., compensate Barberton Ohio 447 this can for the error in Glass St.3d Court (1983), N.E.2d relied instructions on the issue of dam- cases jurisdictions York, ages. only compounds therein from the To do of New so not California, error, New Jersey, Pennsylvania, deprives parties but both of their “Having Hawaii. carefully right by jury trial examined constitutional to a on the arguments support contemporane- issue. rule, physical injury ous it is clear that reversal, join I but Court's would

continued adherence the rule makes lit- entire remand matter for an new trial Schultz, tle sense.” 447 N.E.2d at 112. on the issue of Justice, BAKES, concurring part: ON REHEARING I portion concur in that of the Court’s HUNTLEY, Justice. opinion which affirms the liability defendants, but reverses the of dam- opinion The Court’s of October ages. However, both the the trial action of exception, computation with one reworking court and of this Court in ultimate awards set forth footnote jury’s verdict in order to correct the obvi- *13 reaffirmed. ous error damages which occurred in the rehearing attorneys On the for North- portion points necessity of this trial out the Real Estate west Inc. have invited our at- for an unconditional new trial issue on the tention to the fact the reductions in damages. problems the which trial judgment total in computed footnote 1 court and struggling this Court are with in attorney failed to make reductions of the Vs order try to to make sense out of this proportionate by fees amount jury’s actually verdict stem from inade- the individual awards were reduced. quate and erroneous instructions to the jury Thus, on damages. opinion issue No amount footnote 1 of the is amend- of restructuring either the trial or ed to read as follows: One-third of Disallowed Sum Atty Awarded as Compensatory Plaintiff Punitive Fees to be Total Damages Damages Damages Reduced Umphrey $6,200.00 $21,815.50 $(2,683.34) $25,332.16 (2.638.34) Horn 5.650.00 5,556.80 21.632.50 24.599.16 (2.638.34) Stoke 21.534.50 24.407.96 (2,666.67) Rower 24,015.83 5.200.00 21.482.50 21,170.80 Morgan 4,262.50 (2.638.34) 22.749.96 Frovarp (2.638.34) 5.609.00 21.618.50 24.544.16 (2.638.34) Evans 6.200.00 21.815.50 45,489.15 25.332.16 52,711.15 14,822.00 (7,600.00) Hanna BAKES, No costs Justice, awarded. dissenting: I dissent from the action taken DONALDSON, C.J., BISTLINE, J„ majority upholding previous opinion is- concur. 12,1983 (after again sued October on modi- downward). SHEPARD, fying J., The er- dissents and would not rors committed in sufficiently this case are modify opinion the Court’s of October whole, egregious, when on viewed outright grant improper warrant an nized were when he of a new trial on shifted those compensatory damages elements out of the damages.1 the issue of category jury put awarded them The first error occurred in this case punitive damages category. the trial court’s instructions given damages. special verdict major The .second error occurred when jury relating damages stated: request the court refused the defendants’ poll to determine how “We, [plaintiffs’] jury, dam- assess against ages arrived at their verdict after it was obvious the Defendants as follows: that an error had been committed $_ Compensatory damages A. calculating $_” jury in damages B. Punitive given Only three instructions were on dam- Yes, please. if the Court “MR. SMITH: compen- ages.2 Instruction 24 stated that jury also request I would (1) property satory consisted of question: polled with this (2) damage, “special consequential or re- copy off or any you jurors “Did damages.” Instruction 24A defined While or any the charts writing duce to was, in the property damage nowhere what therefrom which figures or summaries “special” the term or instructions was attorneys, Ver- by plaintiffs’ were used “consequential” defined. term final Wilde, course of during the billis or inform the totally The instructions failed to argument 1979? on December of, jury as to the elements or what consti- request is, yes, I would “If the answer special damages. consequential tuted made. question be the further failing Because of this initial error in the discus- writings used “Were such instruct on the of these elements definition sion and deliberation understandably any damages, con- reaching their award plaintiffs? improper sidered and awarded *14 out-of-pocket attor- an category, such as that would be this I think “THE COURT: process, Mr. Smith. damages jury mental suffer- the ney fees and invasion of deny your motion. recog- I ing, court later will which even the trial However, NO. 24A grant "INSTRUCTION on while I would a new trial 1. that, property to the damages, dam- new trial on the issue of "You are instructed since a case, by the ages going misrepresentation damage aspect is not to be ordered this Court in a Huntley by of set out Justice difference reduction in the is the proper of element majority appropriate. present opinion price the actual contract sale between the bought. property of the value NO. 24 “INSTRUCTION repairing supplying or cost of "The reasonable question you on the “If decide for the Plaintiffs property in the necessary put parts to liability, you the amount of of must then fix in is represented would be it it was condition reasonably fairly com- money which will you in deter- proper to consider evidence for following pensate any elements them for of the purchase mining between the the difference damage proved by to have re- the evidence of property price value of and the actual of the Defendants: sulted from the conduct bought. by the evidence "1. The amount established NO. 25 "INSTRUCTION damage. in- property This amount and for which you conduct find that the defendants’ "If differences, any, between the con- if cludes the plaintiffs injury was to the proximately caused particular parcel, price purchase as to each tract fraudulent, justice you if believe that of the sale. at the time and the actual value it, may, you good require in addition public money is enti- each Plaintiff "2. The amount of plaintiffs enti- you any tled, find to which consequential special or to as a result of tled which an amount to the award natural result which are the to deter punish the defendants will serve Defendants fraud. Such engaging in similar conduct. others compen- are known as two elements "The above relation bear some reasonable award must satory damages; and damages, the cause fully proportion ex- to the actual damages, is more which or thereof, "3. Punitive defendants, and the plained these instructions. conduct of the elsewhere in damages has any elements of of these objective "Whether of deterrence.” you deter- proved by is for the evidence been mine. show, “MR. HAM major AN: Let the The next record error occurred when the Defendant, Sprinkel, joins in re- trial court moved certain elements of dam- quest, your Honor. ages from the award of dam- ages punitive the award of “THE COURT: Motion is denied.” This action resulted an increase of the Stopping point at that determine punitive damages of jury’s from the source of the obvious error would have $54,500 figure figure of to the trial court’s any problem impeaching alleviated or $196,558.95. There is no indication that clarifying the If point. verdict at a later $54,500 jury, awarding punish “to error, the verdict obviously as later the defendants and to deter others from court, by indicated the trial jury should engaging conduct,” in similar would have never have been dismissed without first agreed figure to increase that to over correcting problems the verdict. All of the $196,000if some of the compensatory dam- that have arisen as the result the trial ages awarded legally improper. court’s directly amendment of the verdict apparent While it is jury that the intended result from the failure of the trial court to defendants, punish apparent it is not investigate problem discharge before punish intended to the defendants jury point. and correct it at that See Price, to the extent allowed the trial Bates v. 166 P. court’s (1917) (if verdict, irregular, reworking duty verdict is it is raised it). court to jury’s send back to punitive damages correct award of ap- $142,000. proximately major The third error when occurred trial court modified the verdict based By point it should have been obvious affidavits procured that were to all that a new trial necessary be- defendants, without notice to the in viola- previous cause the verdict was now tion of the Code of Responsi- Professional hopelessly controversy, mired in barely bility, 7-108(D). Rule requires That rule original resembled the verdict returned any contact with the after their jury. However, this Court then took it discharge accompanied following upon itself change to make a further in the reasonable notice opposing counsel verdict, reducing punitive damages and other interested counsel. Plaintiffs’ $117,458.95, awarded to because of an al- counsel failed to follow this rule in obtain- leged recovery attorney double fees. ing the jurors, depriving affidavits of the Then, rehearing, again this Court has right defendants’ of their basic to be jury” by reworked the “verdict of the disal- *15 notified and have opportunity to be lowing a allegedly further one-third sum present. The trial court then erred in us- now, attorney By awarded as fees. a ver- ing verdict, those affidavits to rework the jury dict of the point existed at one reworking upon instead of the verdict in- longer in time except no possibly exists open formation obtained in court from a jury. minds of the polled jury in which per- both counsel were Accordingly, I requires believe fairness participate. very type mitted to appellants that the given a new trial on sought information which the defendants court, the issue of open It is and which obvious that was denied to them court, jury was the trial was then confused on the obtained is- 7-108(D)3 sue because inadequate violation of Rule instructions. used in reworking trial court the The trial court expressly said so and used verdict. justification confusion as his for re- Nothing suggests permission 3.' in the record failure interrogate of the trial court to 7-108(D) comply in this case to jury with Rule was on the same matters which were later in- willful, knowing or and the defendants do not cluded in the affidavits taken without notice to that, charge. complaint make that Their them, were refused. court, they requested while was still in working jury’s verdict. That confusion

resulted trial court from the fact that the

did consti- as to what instruct compensatory damages

tuted in this case. Co., Shields v. Morton Chemical (1974), 518 P.2d 857 we held that given though

even each the instructions improp-

to the jury proper, in effect an

er grouping of them constituted reversible

error. How more we re- much so should

verse the be- this case instruct, adequately

cause of the failure to

the obvious confusion found both Court,

trial court and this and the rework-

ing verdicts based affidavits notice, jurors, taken without when the party opportunity

other denied

attempt to the same elicit information

open court, partic- parties both where could

ipate.

Accordingly, I dissent. WOODVINE, L.

Richard

Claimant-Appellant, DAIRY, INC., Employer, and

TRIANGLE Compa-

Argonaut Insurance Northwest

ny, Surety, Defendants-Respondents. *16 14436.

No.

Supreme of Idaho. Court

7,May 1984. July

Rehearing Denied

Case Details

Case Name: Umphrey v. Sprinkel
Court Name: Idaho Supreme Court
Date Published: Dec 27, 1983
Citation: 682 P.2d 1247
Docket Number: 13600, 13601
Court Abbreviation: Idaho
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