Whalen v. Rutherford

By Judge J. Michael Gamble

I am writing to rule on the demurrers in this case. I will begin with the demurrer of James Larry Rutherford.

Count I: Actual Fraud and Count II: Constructive Fraud

I sustain the demurrer to Count I alleging actual fraud and Count II alleging constructive fraud. These counts are dismissed. I base this ruling on the economic loss rule and on die basis that the representations are statements of future events.

The parties began a business relationship in 1985 when they entered into a written partnership agreement to operate a horse farm. Also, by contract dated November…