Joseph Wysocki and M. Carmen Wysocki v. Barbara A. Johnson and William T. Johnson, both Individually and as Trustees of the Barbara A. Johnson Living Trust dated 12-17-1996

Summary

The Indiana Supreme Court affirmed a judgment awarding compensatory damages to homebuyers based on common-law fraudulent misrepresentation but denying attorney fees, costs, and exemplary damages under Indiana’s Crime Victims Relief Act. The Court held that a trial court may choose common-law tort liability over quasi-criminal CVRA liability when plaintiffs plead alternative theories of recovery. It also clarified that CVRA liability does not require criminal charges or a conviction and requires proof of the predicate offense by a preponderance of the evidence.

Holdings

1. When a complaint pleads common-law tort liability and CVRA liability as alternative theories, the trial court has discretion to impose ordinary tort liability while declining to impose quasi-criminal CVRA liability, even if the facts could support the predicate criminal offense.
2. A CVRA claimant need not show that the defendant was criminally charged or convicted and need only prove each element of the underlying criminal offense by a preponderance of the evidence.
3. A knowing misrepresentation on a residential real estate disclosure form does not automatically require CVRA liability; the trial court may decline CVRA relief when the plaintiff pleads alternative theories and the court elects to impose common-law tort liability instead.

Questions Presented

1. Whether a trial court has discretion to award compensatory damages for common-law fraudulent misrepresentation while declining to impose quasi-criminal liability, attorney fees, costs, and exemplary damages under the Crime Victims Relief Act when the complaint pleads alternative theories of relief.
2. Whether a CVRA claim requires a criminal charge or conviction, or proof beyond a reasonable doubt, before civil recovery may be awarded.
3. Whether a knowing misrepresentation on a residential real estate disclosure form automatically requires CVRA liability.

Disposition

affirmed