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Keywords

contractplaintiffdefendantstatutesummary judgmentcorporationstatute of limitations
plaintiffdefendantdamagesstatutetrialverdictpleasummary judgmentstatute of limitations

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Ryan v. Collins, 496 S.W.2d 205

Facts

W. S. Ryan purchased 3,500 shares of stock in N.R.T. Electronics Corporation based on representations made by Leo Ledbetter, who claimed the stock was 'hot' and had 'unlimited possibilities.' Ryan paid $7,000 for the stock but did not receive the stock certificates as promised. After a series of communications and delays, Ryan attempted to rescind the contract and filed suit, but the court found that he had waited too long to do so, and his claims were barred by the statute of limitations.

Plaintiff alleged in his petition that his cause of action for fraud was based upon certain representations made by defendant, Leo Ledbetter, to the effect that the stock of N.R.T. Electronics was (1) hot stock, (2) very good, and (3) with unlimited possibilities.

Issue

Did the representations made by the defendants constitute actionable fraud, and was the plaintiff's claim barred by the statute of limitations?

Did the representations made by the defendants constitute actionable fraud, and was the plaintiff's claim barred by the statute of limitations?

Rule

To establish actionable fraud, a plaintiff must show that a false representation of a material fact was made with the intent to induce reliance, and that the plaintiff did rely on it to their detriment. Additionally, claims for fraud are subject to a two-year statute of limitations.

In order to state a cause of action for fraud the plaintiff must show that the defendant made a false representation of a material fact with intent to induce the plaintiff to act upon it and that plaintiff did so rely upon it and thereby suffered damages to his injury.

Analysis

The court analyzed the representations made by Ledbetter and concluded that they were opinions rather than false statements of material fact. The court also determined that Ryan should have been aware of the alleged fraud much earlier than he claimed, thus the statute of limitations barred his claims. Furthermore, the court noted that Ryan's own actions indicated he did not rely on the promise of timely delivery of the stock certificates.

We think the sole and only cause of action asserted by the plaintiff in his pleadings was an action for damages for fraud and deceit.

Conclusion

The court affirmed the summary judgment in favor of the defendants, concluding that the plaintiff did not have a valid cause of action for fraud and that his claims were barred by the statute of limitations.

We have concluded that all defendants would have been entitled to an instructed verdict had there been a conventional trial with pleading and proofs the same as shown in the summary judgment record before us.

Who won?

Defendants prevailed in the case because the court found that the representations made were opinions and not actionable fraud, and the plaintiff's claims were barred by the statute of limitations.

Defendants contend that even though Ledbetter's promise amounts to actionable fraud and even though the stock certificates were not delivered in accordance with the promise, plaintiff's action was barred by the two-year statute of limitations.

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