James Ray vs. Billy Williams

This case involves the doctrine of promissory fraud. The plaintiff service station owner claimed that the defendant rental trailer company fraudulently induced him into entering into a contract to operate a rental trailer dealership by orally assuring him that his dealership rights would be exclusive in Ripley, Tennessee. At the bench trial below, the trial court admitted parol evidence of the oral assurances to show fraud in the inducement of the dealership contract. Based on that evidence, the trial court held that the rental trailer company had committed promissory fraud and awarded damages to the plaintiff service station owner. The rental trailer company now appeals. We affirm the finding of promissory fraud, but reverse in part the damage award.