4/24/2009 - 4/24/2009 -- Mitch Frost and Jack Young Win Appeal in the Alabama Court of Civil Appeals in Alleged Fraud Case

 

On April 24, 2009, the Alabama Court of Civil Appeals affirmed Cullman County Circuit Court Judge Frank Brunner's order granting summary judgment to Classic Automotive, Inc., an automotive dealership. The plaintiff asserted claims for negligence, wantonness, fraud, and invasion of privacy arising from a transaction in which the plaintiff's wife traded in a used vehicle titled in her name for a new vehicle. The plaintiff alleged his wife lacked the mental capacity to enter into the transaction with Classic and therefore sought monetary damages and to have the transaction set aside. The plaintiff argued his wife's prior mental health diagnoses, coupled with her alleged behavior at the dealership, were sufficient to indicate to Classic she was not capable of contracting. The Court of Civil Appeals determined that even assuming the plaintiff's wife was experiencing a manic episode on the day in question, none of the evidence suggested she did not know and understand she was executing a contract with Classic. The Court further noted the plaintiff had no standing to assert negligence and wantonness claims against Classic, as he had no standing to assert injury to his wife, a third-party. Finally, as regards the plaintiff's fraud claim, the Court reasoned that the plaintiff failed to present evidence indicating any representative of Classic made any misrepresentation to the plaintiff or his wife. For more information on this case, or for more information regarding commercial fraud cases in general, please contact Mitch Frost or Jack Young.

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