I. [§ 3.87] Intentional Misrepresentation—Money Damages

• Jurisdiction: Maryland

I. [§ 3.87] INTENTIONAL MISREPRESENTATION—MONEY DAMAGES

John Smith considered establishing an ice manufacturing business. Before he established the business, Smith contacted representatives of George Harris Foods, Inc. to determine if the company would buy Smith's ice. These representatives told Smith that George Harris Foods, Inc. would buy all of the ice Smith could manufacture, and encouraged him to proceed. Smith continued to apprise George Harris Foods, Inc. about the status of his plans, and discussed specific aspects of pricing and financing. After Smith completed the construction of the plant, George Harris Foods, Inc. advised him that they would not purchase any ice from him because they were going to build their own ice plant. Smith instituted suit against George Harris Foods, Inc. Smith had invested his life savings in the business and had depended on George Harris Foods, Inc. to be a major customer. The suit alleged intentional misrepresentation.

COMPLAINT

Intentional Misrepresentation—Money Damages

John Smith (hereinafter "Smith"), Plaintiff, by his attorneys, Anne P. Liwanag and Liwanag & Liwanag, P.A., sues George Harris Foods, Inc. (hereinafter "Harris"), Defendant, and states as follows:
1. Plaintiff Smith is a resident of Baltimore City, Maryland.
2. Defendant Harris is a Delaware corporation, doing business in all counties in the state of Maryland, including Baltimore City.
3. William Hends (hereinafter "Hends") is an individual whose residence is unknown. Hends is and has been at all times relevant hereto a Manager of Harris's Frozen Food Division in Baltimore City, Maryland. All of Hends's acts, representations, and omissions were made within the scope of his employment with Harris. As Hends's employer, Harris is responsible for all acts, representations and omissions made by Hends within the scope of his employment.
4. In the fall of 2021, Smith was considering establishing an ice making business. Smith had located ice making machinery and related equipment available for purchase in North Carolina. However, before committing himself to purchasing this machinery, Smith deemed it prudent to determine the extent of the market for bagged ice products in the mid-Atlantic area.
5. At the suggestion of a friend in the food industry, Smith contacted Hends, an agent, servant, and employee of Harris, in November 2021 to discuss becoming a supplier of bagged ice. Smith explained to Hends that he was giving serious consideration to establishing a business to manufacture ice and locating the business near Harris's processing facility in Baltimore City and that he was interested in doing business with Harris. Smith told Hends that he expected that his plant would be able to generate between seventy thousand (70,000) and eighty thousand (80,000) pounds of ice per day. Hends told Smith that Harris was looking for a new ice supplier.
6. Smith told Hends that he would produce a high quality ice and would provide the ice to Harris at five cents per pound ($.05/lb.), f.o.b. Smith's facility.
7. Hends then stated to Smith that Harris would be willing to buy all of the ice that Smith could manufacture in accordance with the above-stated terms and encouraged Smith to immediately pursue his proposed business. He told Smith to keep Harris advised of his progress.
8. In February 2022, Smith had located a suitable property in Baltimore City and called Hends to report this development. Hends stated that he was pleased with Smith's progress and told Smith to bring this plant into operation at the earliest possible date. Smith inquired about the need for him to place Harris's logo on his packaging, and whether it was necessary to place a UPC code on any packaging. Hends told Smith that neither a logo nor a UPC code was required to be placed on his packaging.
9. In March 2022, Smith finalized arrangements to lease a building in Baltimore City and applied to City Bank for a Two Hundred Fifty Thousand Dollar ($250,000) loan to be guaranteed by the Small Business Administration to finance the acquisition and installation of the ice making machinery and equipment. Smith was required to personally guarantee the loan. Smith continued to keep Hends apprised of developments and, in one conversation in March 2022, asked Hends whether they should enter into a written contract. Hends stated that Harris does not enter into multi-year contracts with ice suppliers.
10. During the same conversation, Smith informed Hends about the terms of financing, and that he was personally

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