Plaintiff Continues to Question Representations After Detrimental Reliance

This opinion from the Tennessee Court of Appeals is a good one to have handy for beating a motion for summary judgment against a plaintiff's claim of misrepresentation. Briefly, the plaintiff was offered a job by an Internet startup, and in the process asked for and received assurances that the startup had financing in place. The plaintiff then quit his existing job and moved to Tennessee to join the startup. Even after quitting and moving, the plaintiff continued to ask about the status of the startup copmany's financing. Lo and behold, the financing was not in place, the company went under, and the plaintiff was terminated. The defendant obtained a summary judgment against the plaintiff's claims of fraud and misrepresentation. The key question appears to hav been whether the plaintiff actually relied on the defendant's representations, given that the plaintiff still questioned the status of financing even after quitting and moving. The Court of Appeals reversed the summary judgment, ruling that this was a question of fact.
Basically, the plaintiff's trust was not as apparent as his reliance. A good opinion to have around when you face similar issues representing a plaintiff.

Written By:Dena Perdue On August 4, 2005 08:02 PM

I am currently attending school for a program leading to a diploma. During the first visit to this campus, the agent assured me that there no additional fees regarding the receipt of my diploma and participation in the graduation ceremony, upon successful completion of the program. I was informed that these fees were included in my tuition and technology fees. I decided to enroll in this campus, based upon this information plus additional amenities and services offered. These included the availability of a student bulletin board where students can advertise used textbooks needed or for sale; job placement assistance related to program and operated similar to an employment agency. I have recently discovered that additional graduation fees will be levied, the job placement assistance consists of networking, and the student bulletin board was removed to prevent the students from easy access to used textbooks. I have also learned that the school is no longer accepting new students and those students enrolled in the two-year program will not be able to complete those two years. I believe that I entered this contract in reliance upon statements made by the school's agent and that it was to my detriment. There are numerous other issues involving other students as well. These issues include financial aid mistakes and illegal activity regarding some student's financial aid applications. I have initiated the grievance process and have prepared a petition for circulation. What are the possible courses of legal action and does detrimental reliance or estopple by representation apply to this case?

Post A Comment / Question






Remember personal info?