fraud in the inducement exception in Wisconsin

2007We held that "a fraud in the inducement claim is not barred by the economic loss doctrine `where the fraud is extraneous to, rather than interwoven with, the contract.'" Id. (quoting Digicorp, 262 Wis.2d 32, ¶ 47 , 662 N.W.2d 652 , and citing Huron Tool & Eng'g Co. v. Precision Consulting Servs., Inc., 209 Mich.App. 365 , 532 N.W.2d 541, 545 (1995)).

2007We held that "a fraud in the inducement claim is not barred by the economic loss doctrine 'where the fraud is extraneous to, rather than interwoven with, the contract.'" Id. (quoting Digicorp, 262 Wis. 2d 32, ¶ 47 , and citing Huron Tool & Eng'g Co. v. Precision Consulting Servs., Inc., 532 N.W.2d 541, 545 (Mich. Ct. App. 1995)).

2023We agree. ¶41 We note first that the Investors do not appear to have argued before the circuit court that the fraud in the inducement exception to the economic loss doctrine applies, and that “[w]e normally will not review an issue raised for the first time on appeal.” See Segall v. Hurwitz, 114 Wis. 2d 471, 489 , 339 N.W.2d 333 (Ct. App. 1983).

2023We agree. ¶41 We note first that the Investors do not appear to have argued before the circuit court that the fraud in the inducement exception to the economic loss doctrine applies, and that “[w]e normally will not review an issue raised for the first time on appeal.” See Segall v. Hurwitz, 114 Wis. 2d 471, 489 , 339 N.W.2d 333 (Ct. App. 1983).

2022Co., 2020 WI 2, ¶¶33-35 , 389 Wis. 2d 669 , 937 N.W.2d 37 (discussing the fraud in the inducement exception to the economic loss doctrine, which requires intentional misrepresentation to be proven); WIS JI— CIVIL 2400 (2021). 13 No. 2020AP841 trial, the court ruled that it was “not satisfied that [Siegfried] ha[d] proven by the greater weight of the credible evidence that the [Defendants] intentionally defrauded [Siegfried] by selling him something other than what he thought he was driving.”11 Siegfried contends this determination was erroneous because he met his burden to show intentional mis

2022Co., 2020 WI 2, ¶¶33-35 , 389 Wis. 2d 669 , 937 N.W.2d 37 (discussing the fraud in the inducement exception to the economic loss doctrine, which requires intentional misrepresentation to be proven); WIS JI— CIVIL 2400 (2021). 13 No. 2020AP841 trial, the court ruled that it was “not satisfied that [Siegfried] ha[d] proven by the greater weight of the credible evidence that the [Defendants] intentionally defrauded [Siegfried] by selling him something other than what he thought he was driving.”11 Siegfried contends this determination was erroneous because he met his burden to show intentional mis

2008Wickenhauser, 302 Wis. 2d 41, ¶ 3 . ¶ 31.

2008Wickenhauser, 302 Wis.2d 41, ¶ 3 , 734 N.W.2d 855 . ¶ 31 The Wickenhausers bought 300 additional acres in 1997 for their dairy farm from Thomas Burow, and they obtained their financing from Jack Lehtinen (Lehtinen).

2007Van Lare, 274 Wis.2d 631, ¶ 24 , 683 N.W.2d 46 . ¶ 61 Thus, the Van Lare court left open the question of the extension of the economic loss doctrine in real estate transactions to noncommercial transactions, to claims of intentional misrepresentation, to transactions between unsophisticated parties negotiating without counsel, and to *873 transactions with an oral agreement or with a not-fully-bargained-for agreement. [8] ¶ 62 After Van Lare , this court adopted, in a product case, a fraud-in-the-inducement exception to the economic loss doctrine when intentional misrepresentation is alleged.

2007Van Lare, 274 Wis.2d 631, ¶ 24 , 683 N.W.2d 46 . ¶ 61 Thus, the Van Lare court left open the question of the extension of the economic loss doctrine in real estate transactions to noncommercial transactions, to claims of intentional misrepresentation, to transactions between unsophisticated parties negotiating without counsel, and to *873 transactions with an oral agreement or with a not-fully-bargained-for agreement. [8] ¶ 62 After Van Lare , this court adopted, in a product case, a fraud-in-the-inducement exception to the economic loss doctrine when intentional misrepresentation is alleged.

2007Van Lare, 274 Wis.2d 631, ¶ 24 , 683 N.W.2d 46 . ¶ 61 Thus, the Van Lare court left open the question of the extension of the economic loss doctrine in real estate transactions to noncommercial transactions, to claims of intentional misrepresentation, to transactions between unsophisticated parties negotiating without counsel, and to *873 transactions with an oral agreement or with a not-fully-bargained-for agreement. [8] ¶ 62 After Van Lare , this court adopted, in a product case, a fraud-in-the-inducement exception to the economic loss doctrine when intentional misrepresentation is alleged.

2007Van Lare, 274 Wis.2d 631, ¶ 24 , 683 N.W.2d 46 . ¶ 61 Thus, the Van Lare court left open the question of the extension of the economic loss doctrine in real estate transactions to noncommercial transactions, to claims of intentional misrepresentation, to transactions between unsophisticated parties negotiating without counsel, and to *873 transactions with an oral agreement or with a not-fully-bargained-for agreement. [8] ¶ 62 After Van Lare , this court adopted, in a product case, a fraud-in-the-inducement exception to the economic loss doctrine when intentional misrepresentation is alleged.

2003First Nat'l Leasing Corp. v. City of Madison, 81 Wis. 2d 205, 208 , 260 N.W.2d 251 (1977).

2003First Nat'l Leasing Corp. v. City of Madison, 81 Wis. 2d 205, 208 , 260 N.W.2d 251 (1977).

2003These include "`any sums that are necessary to restore [the party fraudulently induced] to his position prior to the making of the contract.'" Id. at 166 . [3] Because of the nonparticipation of two justices and the split decision among the participating justices, this case accomplishes only the rejection of the broad fraud-in-the-inducement exception contained in Douglas-Hanson Co. v. BF Goodrich Co., 229 Wis. 2d 132 , 598 N.W.2d 262 (Ct. App. 1999).