Deceptive Representation – Exculpatory Clauses – Contracts & Agreements

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WI Court of Appeals – District II

Case Name: Catherine Fricano v. Bank of America, N.A.

Case No.: 2015AP20

Officials: Neubauer, C.J., Reilly, P.J., and Hagedorn, J.

Practice Area: Deceptive Representation – Exculpatory Clauses – Contracts & Agreements

Bank of America N.A. (the Bank) appeals from a judgment in favor of Catherine Fricano on her WIS. STAT. § 100.18(1) (2013- 14) deceptive representation claim. A jury found the Bank’s deceptive representation in the sale contract induced Fricano to enter into the purchase of a home from the Bank and awarded her compensatory damages for extensive water and mold damage despite the “as is” and exculpatory clauses in the parties’ contract. We reject the Bank’s challenge to the trial court’s denial of its postverdict motions. There was sufficient evidence to support the jury’s verdict that the Bank made a deceptive statement concerning the sale of the property with the intention of inducing the sale of the property and that Fricano suffered a loss as a result of that representation. The “as is” and exculpatory clauses in the parties’ contract do not, as a matter of law, relieve the bank/seller of liability under §100.18(1) for its deceptive representation in the contract which induced agreement to such terms. We affirm.

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Attorney Derek A. Hawkins is the managing partner at Hawkins Law Offices LLC, where he heads up the firm’s startup law practice. He specializes in business formation, corporate governance, intellectual property protection, private equity and venture capital funding and mergers & acquisitions. Check out the website at www.hawkins-lawoffices.com or contact them at 262-737-8825.