New & Used Auto Sales, Inc., a Corporation, Hallie F. Bollen and Florence N. Bollen v. Lloyd Ahvakana

Lloyd Ahvakana, an Eskimo, hereinafter called appellee, brought an action in the United States District Court for the District of Alaska, against New & Used Auto Sales, Inc., a corporation, Hallie F. Bollen, and Florence N. Bollen, hereinafter called appellants, for compensatory and punitive damages occasioned by the sale by appellants of an automobile to appellee. In his complaint appellee alleged, among other things, that appellants falsely represented to appellee that the automobile was new, whereas in fact it was a used car and had been driven .some 4,339 miles from Illinois to Anchorage, Alaska, as appellants well knew.

After trial before the Court, the District Judge found (1) the allegations of the complaint to be true, (2) that appellee had no knowledge of the falsity of the .representations, (3) that appellants did have knowledge of the falsity of the representations when made to appellee, and (4) that the false representations were made by appellants with the intention that appellee should act thereon. On these findings the Court awarded appellee $818.90 actual and $400 exemplary damages, plus costs and attorney’s fees in accordance with Rule 25 of the Uniform Rules of…