Freeman Dodge, Inc. v. MCC Financial Services, Inc.

Ness, Justice:

This action for breach of contract accompanied by fraudulent act was brought by respondent Freeman Dodge, Inc. against appellant MCC Financial Services, Inc.

The jury awarded respondent $1095 actual damages and $12,500 punitive damages. We affirm the actual damage award and reverse the award of punitive damages.

In February of 1974, Freeman Dodge sold a 1974 Dodge Challenger to Walter Gunn. The car was financed through MCC’s local office. Appellant and respondent had a Dealer. Reserve Agreement, paragraph seven of which provided:

“If any merchandise covered by any Instrument is…