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Gremminger v. Missouri Labor and Industrial Relations Commission2/24/2004
Opinion Vote: AFFIRMED.
Norton, P.J., and Hoff, J., concur.
Opinion:
Claimants appeal from the Final Award of the Labor and Industrial Relations Commission (the Commission) affirming the award of the Administrative Law Judge (ALJ) denying compensation from the Tort Victims' Compensation Fund for an unsatisfied money judgment in their favor for fraudulent representation. We affirm for the reason that fraudulent representation is not a "personal injury " compensated by the Tort Victims' Compensation Fund, as that term is used in the Tort Victims Compensation Act, Sections 537.675-537.693 RSMo (2002 Supp.) (the Act).
In 1999, claimants, Robert and Georgia Gremminger, filed a lawsuit against Advantage Homes, Inc. for declaratory and injunctive relief and damages, alleging Advantage fraudulently induced them to enter a contract to provide a Wausau-built home, when it intended to provide a home not built by Wausau. Claimants specifically requested the trial court to enjoin Advantage from constructing a home on their property, to declare the contract terminated, to declare claimants entitled to a full refund of all deposits made, to award damages from the misrepresentations in the amount of $61,979 and to award punitive damages in the amount of $1,000,000. The trial court entered a default judgment awarding all relief requested. The judgment was uncollectible.
On December 31, 2002, claimants each filed an application for Tort Victims' Compensation with the Division of Workers' Compensation (the Division). In their applications they listed "Fraudulent Misrepresentation in sale of residence to be constructed" in the box denominated "Nature of Tort Committed." The Division made an administrative determination denying benefits on the ground that claimants did not meet the statutory definition of "uncompensated tort victim." After a hearing, the ALJ denied compensation for the reason that the injury suffered by claimants was not a "personal injury" as contemplated by the Missouri legislature in establishing the Tort Victims' Compensation Fund. The Commission affirmed.
In their first three points claimants assert that the Commission erred in determining that their claim for fraudulent misrepresentation was not a tort covered by the Tort Victims' Compensation Fund. They contend that the term "personal injury ," as used in the Act, extends to an injury to a person's rights and is not limited to bodily injury. Claimants misperceive the issue. Even if "personal injury," as used in the Act, includes an injury to personal rights, it does not extend to a claim for fraudulent representation.
The purpose of Section 537.675 of the Act is to "create a fund to compensate certain tort victims who might otherwise be forced to rely on public assistance, while other tort victims, particularly those receiving large punitive damages awards, receive more than is necessary to pay for their injury ." Fust v. Attorney General for the State of Missouri, 947 S.W.2d 424, 430 (Mo. banc 1997). Section 537.681 of the Act provides that an "uncompensated tort victim" is eligible for compensation from the Tort Victims' Compensation Fund. Plaintiffs each claim to be an "uncompensated tort victim" as defined in section 537.675.1(6) of the Act because each is "a person who... is a party in a personal injury or wrongful death lawsuit" and has "obtained a final monetary judgment in that lawsuit . . . against a tort-feasor for personal injuries . . . ." (Emphasis added). Claimants argue that their lawsuit for fraudulent misrepresentation was a "personal injury" lawsuit, entitling them to compensation from the Tort Victims' Compensation Fund.
"Personal injury" i
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