SHEE-CON, INC., APPELLANT,
v.
AL SEIM APPRAISAL SERVICE, INC., AND AL SEIM, INDIVIDUALLY, APPELLEES
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Shee-Con appeals the dismissal of its counterclaim for fraudulent misrepresentation against an appraisal service that allegedly failed to properly assess fire-damaged equipment, causing Shee-Con to repair rather than replace the equipment. The court reversed, holding that Shee-Con adequately pleaded reliance on the alleged misrepresentations.
The trial court erred in dismissing count III. Shee-Con adequately pleaded the essential elements of fraudulent misrepresentation, including reliance by both Shee-Con and Great American on Al Seim's alleged misrepresentations, resulting in a substantial change in position (allowing repair instead of totaling the equipment). The amended counterclaim states a cause of action for which relief could be granted.
[1] A party alleging fraud and deceit must plead the essential elements, including a false statement of material fact, the representor's knowledge of its falsity, an intentio…
[2] A counterclaim sufficiently states a cause of action for fraud and deceit when it alleges that the defendant made misrepresentations to both the plaintiff and its insurer…
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Join FLexlaw to unlock all legal intelligence“The essential elements of a fraudulent representation for which relief can be had are: (1) a false statement concerning a specific material fact; (2) the representor's knowledge that the representation is false; (3) an intention that the representation induce another to act on it; (4) consequent injury by the other party acting in reliance on the representation.”
Establishes the four-element test for fraudulent misrepresentation that Shee-Con was required to plead.
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Join FLexlaw to unlock all legal intelligenceShee-Con owned a WABCO Pan earth-moving machine that was heavily damaged by fire and sent for repairs. Great American Insurance retained Al Seim Appra…
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FRANK D. UPCHURCH, Jr., Judge,
Shee-Con, Inc. appeals from an order dismissing its amended counterclaim against A1 Seim Appraisal Service, Inc. and a final judgment entered thereon. The question is whether the trial court erred in dismissing count III of the amended counterclaim.1 We hold that it did and reverse the final judgment as to count III.
Shee-Con owned a piece of earth moving equipment known as a “WABCO Pan” which was heavily damaged by fire. The WABCO pan was transported to Adams Construction Equipment Company for repairs. Great American Insurance Company, the insurance carrier for Shee-Con, instructed Shee-Con to contact A1 Seim Appraisal Service which had been retained to prepare an estimate of the repair costs, to monitor the necessary repairs undertaken by Adams, and to otherwise adjust the property loss.
Several months later, Adams sued Shee-Con to recover sums due on a lease for replacement equipment. Shee-Con counterclaimed against Al Seim alleging that Al Seim had made misrepresentations of material fact regarding attempts to obtain a cost estimate and to prepare an evaluation of the repair costs and the value of the pan. Shee-Con further alleged that had Al Seim made a proper appraisal, the WABCO pan would have been “totaled” and Shee-Con would have received its actual cash value permitting it to purchase replacement equipment and continue its business uninterrupted.
Al Seim concedes that an agent, even though acting in the course of his employment, is liable for actual deceit and fraudulent representations. Wheeler v. Baars, 33 Fla. 696, 15 So. 584 (1894); Bobby Jones Garden Apts., Inc. v. Suleski, 391 F. 2d 172 (5th Cir.1968). However, Al Seim contends that count III not only fails to state a cause of action but alleges facts which affirmatively establish that Shee-Con has no cause of action for fraud and deceit.
The essential elements of a fraudulent representation for which relief can be had are:
(1) a false statement concerning a specific material fact;
(2) the representor’s knowledge that the representation is false;
(3) an intention that the representation induce another to act on it;
(4) consequent injury by the other party acting in reliance on the representation.
Amazon v. Davidson, 390 So. 2d 383 (Fla. 5th DCA 1980).
Al Seim contends in his argument that there are no allegations that Shee-Con acted in anyway in reliance upon the alleged misrepresentations, but that any misrepresentations made were made to Great American and that only Great American relied on them. As only the person defrauded can claim a basis for relief, Al Seim argues that the complaint affirmatively shows that Shee-Con is not entitled to relief. However, this argument overlooks the allegations of paragraph 25 of the counterclaim. There Shee-Con alleged that Al Seim made misrepresentations of material fact to Shee-Con and to Great American and that these misrepresentations were relied upon by Great American and Shee-Con with a resulting substantial change in position, i.e., permitting the repair rather than “totaling” the WABCO Pan. These allegations are sufficient to show that Shee-Con, as well as Great American, may have been defrauded.
Mailing Corp. v. Ladan Corp., 85 So. 2d 607 (Fla.1956), cited by Al Seim is distinguishable. In that case, the complaint failed to allege that the plaintiffs had relied or had the right to rely on the allegedly false representations. In addition, the party actually defrauded was not a plaintiff in the cause. In contrast, here Shee-Con specifically alleged that it had relied on A1 Seim’s alleged misrepresentations to its detriment. Thus, unlike Mailing, the amended counterclaim here states a cause of action for which relief could be granted and hence should not have been dismissed.
REVERSED and REMANDED as to count III.
ORFINGER, C.J., and DAUKSCH, J., concur. . Shee-Con did not appeal the dismissal of count I. As to count II, the issue was not raised in Shee-Con’s initial brief and therefore we do not consider whether this count was properly dismissed. See Pursell v. Sumter Electric Co-Operative, Inc., 169 So. 2d 515, 518 n. 2 (Fla. 2d DCA 1964).
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Taylor v. Kenco Chem. & MFG. Corp. & Emerald Mfg. Co., Inc., 465 So. 2d 581 (Fla. 1st DCA 1985)…or’s knowledge that the representation is false; (3) an intention that the representation induce another to act on it; (4) consequent injury by the other party acting in reliance on the representation. Shee-Con, Inc. v. Al Seim Appraisal Service, 427 So. 2d 311, 312 (Fla. 5th DCA 1983). Fraud contemplates an intent to deceive, however, “[cjonstructive fraud may exist independently of an intent to defraud.” Harrell v. Branson, 344 So. 2d 604, 606 (Fla. 1st DCA 1977). Constructive fraud is a term applied to…
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James v. Nationsbank Tr. Co. (Florida) Nat'l Assoc., 639 So. 2d 1031 (Fla. 5th DCA 1994)…nd purchasers in the marketplace to establish values for informed negotiations. An appraisal, while opinion, may support a claim of fraud where the appraisal is an expression of a false opinion. See Shee-Con, Inc. v. Al Seim Appraisal Service, Inc., 427 So. 2d 311 (Fla. 5th DCA 1983). We remand to the trial court for further proceedings with respect only to the issue whether either or both of the appellants were fraudulently induced to execute the specific note and mortgage which are the subject of each of t…
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Bongard v. Winter, 516 So. 2d 27 (Fla. 3d DCA 1987)…cting on. behalf of a disclosed client. See Zafiris, Inc. v. Moss, 506 So. 2d 27 (Fla. 3d DCA 1987); Gold v. Wolkowitz, 430 So. 2d 556 (Fla. 3d DCA), review denied, 437 So. 2d 677 (Fla.1983); see also Shee-Con, Inc. v. Al Seim Appraisal Serv., Inc., 427 So. 2d 311 (Fla. 5th DCA 1983) (agent liable for own fraud); cf. Adams v. Chenowith, 349 So. 2d 230 (Fla. 4th DCA 1977) (recognizing that attorney may be liable to client’s adversary if attorney commits non-negligent tort such as fraud). Furthermore, a present…
Previewing 3 of 10 citing cases — full citator treatment, depth of discussion, and citing context are member features.
Join FLexlaw to unlock all legal intelligenceAuthorities Cited
- Wheeler v. Baars, 33 Fla. 696 (Fla. 1894)
- Evelyn Amazon v. Davidson, 390 So. 2d 383 (Fla. 5th DCA 1980)
- Bobby Jones Garden Apts., Inc. v. Suleski, 391 F.2d 172 (5th Cir. 1968)
- Pursell v. Sumter Elec. Co-Operative, Inc., 169 So. 2d 515 (Fla. 2d DCA 1964)
- Maling Corp. v. Ladan Corp., 85 So. 2d 607 (Fla. 1956)