Fraudulent Representation Duty to Disclose

Appellant-borrower challenged the reinstatement of a mortgage-deficiency judgment in favor of respondent-bank on summary judgment, arguing that the District Court improperly relied upon the theory of negligent misrepresentation and that summary judgment cannot be sustained on any other basis. Appellant also argued that there was no basis for the award of attorney fees to respondent. The District Court reinstated the judgment after it was discovered that appellant failed to disclose property in settling the judgment. Because the parties were adverse, the Court of Appeals concluded that negligent misrepresentation was an improper basis for summary judgment. However, because appellant submitted a document that purported to contain all of her assets and liabilities but omitted her most significant asset, she made a false representation, and therefore committed fraudulent representation. However, there was no statutory or contractual basis for the award of attorney fees. Affirmed in part and reversed in part.

A15-0275 Highland Bank v. Wyatt (Ramsey County)