Yuzefovsky v. St. John's Wood Apartments

Present:    All the Justices

ALEX YUZEFOVSKY
                                         OPINION BY
v. Record No. 993015          JUSTICE LAWRENCE L. KOONTZ, JR.
                                      January 12, 2001
ST. JOHN’S WOOD APARTMENTS, ET AL.

            FROM THE CIRCUIT COURT OF THE CITY OF RICHMOND
                     Melvin R. Hughes, Jr., Judge

     In this appeal, we consider whether the trial court

properly sustained a demurrer to a second amended motion for

judgment filed by a tenant against his landlord alleging fraud,

negligent failure to warn, and negligent failure to protect

concerning the danger of a criminal assault on the tenant by a

third party which occurred on the landlord’s property.

     Because the procedural posture of this case controls our

consideration of the factual allegations of the pleading at

issue, we initially relate the proceedings in the trial court

that preceded the trial court’s sustaining the demurrer to that

pleading.    On April 26, 1998, Alex Yuzefovsky, a tenant of St.

John’s Wood Apartments, filed a motion for judgment against St.

John’s Wood Apartments and the alleged owner of that

development, SJW, Limited Partnership.    Under various theories,

Yuzefovsky alleged that these defendants were liable for

injuries he sustained on the property of St. John’s Wood

Apartments as a result of a criminal assault by a third party.

Prior to serving the original motion for judgment on these
defendants, Yuzefovsky filed an amended motion for judgment

adding as additional defendants General Services Corporation and

GSC Security.   This pleading alleged that the former had an

ownership interest in St. John’s Wood Apartments and the latter

provided security services to the other defendants on the

premises of these apartments.   This pleading included additional

theories of liability and increased ad damnum claims.

     After the first amended motion for judgment was served on

the defendants, they filed a joint plea in bar of the statute of

limitations with respect to a number of the claims asserted by

Yuzefovsky and a demurrer to all of them.   Thereafter, the trial

court sustained the plea in bar to one claim, sustained the

demurrer to the remaining claims except for a claim of breach of

contract, and granted Yuzefovsky leave to file a second amended

motion for judgment.   On July 7, 1999, Yuzefovsky filed his

second amended motion for judgment reasserting each of the

claims to which the trial court had previously sustained the

defendants’ demurrer without material change in the factual

allegations.    This pleading, however, did not reassert the claim

to which the plea in bar had been sustained or the contract

claim to which the demurrer had been overruled.   The defendants

filed another demurrer to all the claims in the second amended

motion for judgment, the trial court sustained this demurrer,

and dismissed the case with prejudice.

                                    2
     Our consideration of the factual allegations in this case

is governed by the well-settled principle that when a circuit

court sustains a demurrer to an amended motion for judgment

which does not incorporate or refer to any of the allegations

that were set forth in a prior motion for judgment, we will

consider only the allegations contained in the amended pleading

to which the demurrer was sustained.   Bell Atlantic-Virginia,

Inc. v. Arlington County, 254 Va. 60, 63 n.2, 486 S.E.2d 297,

299 n.2 (1997); see also Breeding v. Hensley, 258 Va. 207, 212,

519 S.E.2d 369, 371 (1999).   Our consideration of those

allegations is further guided by well-settled principles of

appellate review.   A demurrer admits the truth of the facts

contained in the pleading to which it is addressed, as well as

any facts that may be reasonably and fairly implied and inferred

from those allegations.   Cox Cable Hampton Roads, Inc. v. City

of Norfolk, 242 Va. 394, 397, 410 S.E.2d 652, 653 (1991).      A

demurrer does not, however, admit the correctness of the

pleader’s conclusions of law.   Ward’s Equip., Inc. v. New

Holland North America, Inc., 254 Va. 379, 382, 493 S.E.2d 516,

518 (1997).   Accordingly, we will consider the facts stated, and

those reasonably and fairly implied and inferred, in the second

amended motion for judgment in a light favorable to Yuzefovsky,

but we will review the sufficiency of the legal conclusions

ascribed to those facts de novo.   In relating these facts we

                                   3
will hereafter refer in context to all the defendants

collectively as “St. John’s Wood” and the apartment complex as

“the development.”

     In December 1994, Yuzefovsky moved to Richmond to begin new

employment.   His employer initially provided him with temporary

housing while he looked for permanent housing.   In conducting

his housing search, Yuzefovsky was particularly concerned with

the issue of his personal security, desiring to find housing in

a safe and crime-free environment.

     In discussing his interest in leasing an apartment in the

development with employees of St. John’s Wood, Yuzefovsky

indicated that he was unfamiliar with the area where the

development was located and expressed his concern for security.

He specifically asked the employees if the development “was safe

and whether there had been crime on and/or about the property.”

The employees told Yuzefovsky “that there had been no crimes at

[the property of] St. John’s Wood, and that it was safe.”   They

further advised Yuzefovsky that “police officers lived in the

development and that police vehicles patrolled the property.”

     Based upon these assurances, Yuzefovsky became a tenant of

St. John’s Wood, leasing an apartment in the development and

taking possession of it in February 1995.   On November 21, 1996,

Yuzefovsky was confronted by an assailant armed with a sawed-off

shotgun in a walkway on the property of St. John’s Wood and

                                     4
immediately adjacent to his apartment.        The assailant shot

Yuzefovsky in the right shoulder, took his car keys, and fled in

Yuzefovsky’s vehicle.   The assailant was subsequently arrested

and convicted of crimes related to this incident.

     Yuzefovsky alleges that the employees of St. John’s Wood

knew that their representations that there had been no crimes

committed on or in the vicinity of the development, that the

development was safe, that police officers lived there, and that

police vehicles patrolled the development were false.        He

further alleges that in 1994, 656 crimes, including 113 crimes

against persons, were reported to the Richmond City Police as

having occurred in the vicinity of the development and that

criminal activity in that vicinity remained at that level for

the next two calendar years.   Yuzefovsky further alleges that

during the three-year period from November 21, 1993 to November

21, 1996, there were 257 crimes reported to Richmond City Police

that occurred on the development. 1       These crimes included “5

robberies . . ., 8 aggravated assaults, 13 simple assaults, 37

residential burglaries, 34 larcenies, 97 larcenies from the



     1
      Yuzefovsky does not allege with specificity how many of the
crimes on the property of St. John’s Wood occurred prior to his
decision to lease an apartment from St. John’s Wood. It is a
reasonable inference that at least some of these crimes occurred
prior to December 1994. Yuzefovsky also does not allege with
specificity how many of these crimes occurred, if any,
immediately prior to the November 21, 1996 assault upon him.
                                      5
auto[mobile], 2 abductions, 30 property crimes and 26 motor

vehicles thefts.”

     The legal theories of liability asserted by Yuzefovsky in

his second amended motion for judgment and for each of which he

sought $15,000,000 for compensatory damages, in summary, are:

     (1) Fraud.     Yuzefovsky alleges that the misrepresentations

by employees of St. John’s Wood that the development was safe

and crime-free and that police lived in and patrolled the

development “were negligent, reckless and/or intentional,” and

that he relied on these misrepresentations in leasing an

apartment at the development.    Yuzefovsky alleges that the

injuries he sustained in the subsequent criminal assault were a

direct and proximate result of these misrepresentations.

     (2) Duty to Warn.     Yuzefovsky alleges that under the

circumstances of the previous criminal conduct that was known by

St. John’s Wood, they owed a duty to warn him that “violent

crime had taken place at [the development],” and that the

negligent failure to exercise that duty was a proximate cause of

the injuries he sustained in the subsequent criminal assault.

     (3) Duty to Protect.     Yuzefovsky alleges that St. John’s

Wood, “and in particular GSC Security,” owed a duty to protect

him against unsafe conditions or criminal activities of which

they knew or should have known.    He alleges that St. John’s Wood

had undertaken the duty to protect their tenants through the use

                                     6
of a security service, and that having done so, St. John’s Wood

and this security service 2 were negligent in exercising that duty

by deploying inadequate numbers of security guards, using

“[i]mproper patrol techniques,” providing “[i]nadequate security

equipment,” and in failing to properly train, select, and

compensate their security guards.   Yuzefovsky alleges that the

breach of this duty was a proximate cause of the injuries he

sustained in the subsequent criminal assault.

     (4) Special Relationship.   Yuzefovsky alleges that “[a]s a

tenant of [St. John’s Wood, they] had a special relationship

with [Yuzefovsky].   That [this] special relationship created a

duty to exercise reasonable care to protect [Yuzefovsky] against

criminal acts of third persons and to warn him of the danger of

such attacks, since the danger of such attacks [was] known

and/or reasonably foreseeable to [St. John’s Wood].”   Yuzefovsky

alleges that the breach of the duties created by this special

relationship was a proximate cause of the injuries he sustained

in the subsequent criminal assault.

     In a memorandum in support of the defendants’ demurrer to

the second amended motion for judgment, they contended that the



     2
      The relationship between General Services Corporation and
GSC Security is not clear from the record. For purposes of this
appeal, we draw the reasonable inference that General Services
Corporation is a management company and GSC Security is either a
unit of that company or a wholly owned subsidiary of it.

                                    7
allegations of fraud were based upon vague and indefinite

statements of opinion and not fact, and that Yuzefovsky was not

justified in relying on these statements.   They further

contended that Yuzefovsky had a duty to undertake his own

investigation of the area rather than relying on the statements

made by employees of St. John’s Wood.

     As to the remaining claims of the second amended motion for

judgment, the defendants contended that the liability asserted

by each claim was founded upon the duty of St. John’s Wood to

warn and/or protect tenants against criminal assaults by unknown

third parties.   The defendants contended that there is no

liability on a landlord in such circumstances because, as a

matter of law, there is no special relationship between landlord

and tenant that would give rise to such duties.   They further

contended that even if there were a special relationship in this

case, there was no duty to warn or to protect because the

criminal act of the third party was not reasonably foreseeable.

     The trial court sustained the defendants’ demurrer to the

fraud claim ruling that “[a]ny statement by [employees of St.

John’s Wood] that the area would be safe from crime is opinion,

not fact and not actionable.”   The trial court further ruled

that even if such statements were actionable as fraud, the




                                   8
allegations of fact failed to establish a causal nexus between

those statements and the criminal act that caused Yuzefovsky’s

injuries.

     As to the various theories of negligence, the trial court

ruled that Virginia does not recognize a special relationship

between landlord and tenant giving rise to a duty to warn or to

protect.    Thus, the trial court, relying primarily upon Wright

v. Webb, 234 Va. 527, 533, 362 S.E.2d 919, 922 (1987), further

ruled that a landlord is not liable for crimes committed by a

third party against the tenant on the landlord’s property in the

absence of knowledge that criminal assaults are occurring, or

are about to occur, on the premises which indicate an imminent

probability of harm to the tenant.       This appeal followed.

                             DISCUSSION

     Yuzefovsky assigns three errors to the trial court’s

judgment sustaining the demurrer.    In his first assignment of

error, Yuzefovsky asserts that the trial court erred in ruling,

as a matter of law, that a landlord’s knowledge of prior

criminal assaults on or near the landlord’s property cannot give

rise to a duty to take reasonable measures to warn and/or

protect a tenant from reasonably foreseeable similar assaults.

He asserts in his second assignment of error that the trial

court erred in finding that the alleged false statements of St.

John’s Wood were mere opinions and, therefore, not actionable.

                                     9
He asserts in his third assignment of error that the trial court

erred in ruling, as a matter of law, that the misrepresentations

by St. John’s Wood were not “a proximate cause” of Yuzefovsky’s

injuries.   We will address each of these assignments of error

seriatim.

                          Negligence Issues

     As we noted above, in ruling upon a demurrer the issue

before the trial court in this case, and before this Court on

appeal, is whether the facts alleged in Yuzefovsky’s second

amended motion for judgment, along with the facts that may be

reasonably and fairly implied by or inferred therefrom, are

sufficient to support the causes of action under the theories of

liability to which those facts relate.   With respect to claims

of negligence, the factual allegations must establish the

existence of a duty of care.   Whether such duty exists is “a

pure question of law.”    Burns v. Johnson, 250 Va. 41, 45, 458

S.E.2d 448, 451 (1995).   If the allegations are legally

sufficient to establish a duty as a matter of law, then it

becomes a matter for the jury, upon the evidence, to

“determine[] whether the duty has been performed.”     Acme

Markets, Inc. v. Remschel, 181 Va. 171, 178, 24 S.E.2d 430, 434

(1943).

     The parties do not dispute the law applicable to the

various legal assertions contained in Yuzefovsky’s second

                                    10
amended motion for judgment.   Rather, they dispute whether the

factual allegations made therein sufficiently state the

necessary elements of a cause of action against an owner or

occupier of land, for injuries caused by the criminal act of a

third party.   The question of when and under what circumstances

an owner or occupier of land will be required either to warn his

invitees or tenants of, or protect them against, harm from the

criminal act of a third party is always fact specific and, thus,

not amenable to a bright-line rule for resolution.   In that

regard, while the general rule that no such duty is owed is

unquestionably the law of this Commonwealth, Gupton v. Quicke,

247 Va. 362, 363, 442 S.E.2d 658, 658 (1994), we have recognized

that there are narrow exceptions to this rule.

     It is worthy of note, however, that while recognizing these

exceptions, we have rarely found the circumstances of the cases

under review to warrant the application of these exceptions.

Compare, e.g., Burns, 250 Va. at 44-45, 458 S.E.2d at 450

(business owner not liable for criminal assault on invitee),

Wright, 234 Va. at 533, 362 S.E.2d at 922 (business owner not

liable for criminal assault on invitee), and Gulf Reston, Inc.

v. Rogers, 215 Va. 155, 159, 207 S.E.2d 841, 845 (1974)(landlord

not liable for criminal assault on tenant) with Dudley v.

Offender Aid and Restoration of Richmond, Inc., 241 Va. 270,

279, 401 S.E.2d 878, 883 (1991)(private operator of “half-way

                                   11
house” for felons had special relationship with its clients and

owed duty of care to the public to control clients’ actions).

We have, however, set out in these and other cases the general

analysis applicable for determining whether an exception to the

general rule applies.

     First, the plaintiff must establish that there is a special

relationship, either between the plaintiff and the defendant or

between the third party criminal actor and the defendant. 3   See,

e.g., Holles v. Sunrise Terrance, Inc., 257 Va. 131, 136, 509

S.E.2d 494, 497 (1999).   The necessary special relationship may

be one that has been recognized as a matter of law, such as that

between an innkeeper and guest, or it may arise from the factual

circumstances of a particular case.     Second, the plaintiff must

establish that the special relationship creates a duty of care,

such as to warn and/or protect the plaintiff, as a result of the

particular circumstances of that special relationship, including

the known or reasonably foreseeable danger of harm to the

plaintiff from the criminal act of the third party.    Whether the

circumstances will warrant the imposition of those duties, as we



     3
      Yuzefovsky does not contend that there was a special
relationship between St. John’s Wood and the third party
criminal actor in this case. We note that the existence of such
a relationship is almost always limited to a defendant’s
exercise of a legal duty to control the actions of a person in
custody or on parole. See, e.g., Dudley, 241 Va. at 275-76, 401
S.E.2d at 881.
                                   12
have stated, is a fact-specific determination.    Because the

imposition of those duties “does not depend upon foreseeability

[of harm to the plaintiff] alone,” consideration must be given

to “the magnitude of the burden of guarding against [harm to the

plaintiff] and the consequences of placing that burden on the

defendant.”     Gulf Reston, 215 Va. at 159, 207 S.E.2d at 845

(citation omitted); see also Wright, 234 Va. at 531, 362 S.E.2d

at 921.    Guided by these principles, we begin our analysis to

determine whether there was a special relationship between St.

John’s Wood and Yuzefovsky and, if so, whether any duty of care

was owed by St. John’s Wood to Yuzefovsky under the factual

allegations in the second amended motion for judgment.

        Initially, we observe that, with regard to Yuzefovsky’s

negligence claims, the separate counts in the second amended

motion for judgment incorporate by reference “all other

allegations” in that pleading.    One such allegation is that

Yuzefovsky “was a business invitee and tenant” of St. John’s

Wood.    In a separate count entitled “Special Relationship,”

Yuzefovsky further alleges that because he was their tenant that

a special relationship existed between himself and St. John’s

Wood.    On appeal, Yuzefovsky does not rely on the status of

business invitee to advance his assertions that the trial court

erred in sustaining the demurrer to his pleading.    Rather, his

assertions are made in the context of the relationship between

                                     13
landlord and tenant and, accordingly, we will review the

allegations in the second amended motion for judgment, including

the count entitled “Special Relationship,” in that context.

     In prior cases, we have recognized that the necessary

special relationships that may create a duty of care include

those of common carrier and passenger, business proprietor and

invitee, innkeeper and guest, and employer and employee.      A.H.

v. Rockingham Publishing Co., 255 Va. 216, 220, 495 S.E.2d 482,

485 (1998); see also Klingbeil Management Group Co. v. Vito, 233

Va. 445, 448, 357 S.E.2d 200, 201 (1987).   Although we have

observed that this list is not exclusive, we have consistently

rejected the contention that the relationship of landlord and

tenant, without more, constitutes a special relationship such

that a duty of care may arise with regard to the conduct of a

third party.    Gulf Reston, 215 Va. at 159, 207 S.E.2d at 845;

Klingbeil, 233 Va. at 448, 357 S.E.2d at 201 (holding that

“there was no such common-law duty on this landlord” (emphasis

added)).

     Rather, we have stressed that while a landlord owes a duty

to his tenant to maintain in a reasonably safe condition those

areas over which he has control, the landlord is not an insurer

of his tenant’s safety.    Gulf Reston, 215 Va. at 157, 207 S.E.2d

at 844.    Thus, as a general rule, we have interpreted the

landlord’s duty as being limited to maintaining in good repair

                                    14
and free of latent defects the areas over which the landlord has

control, and not to require the landlord “to act as a policeman

. . . ‘to protect his tenant from a criminal act by a third

person.’ ”   Klingbeil, 233 Va. at 447, 357 S.E.2d at 201

(citation omitted).   Nonetheless, in Gulf Reston and Klingbeil

we made clear that our holdings were based upon the specific

facts of those individual cases.   We did not preclude a

determination under different circumstances that the necessary

special relationship between a landlord and his tenant could be

established such as to create a duty of care upon the landlord

with regard to the criminal conduct of a third party that is an

exception to the general rule applicable to the landlord-tenant

relationship.   Gulf Reston, 215 Va. at 159, 207 S.E.2d at 845;

see also A.H., 255 Va. at 221 n.4, 495 S.E.2d at 486 n.4.

     Assuming, without deciding, that the facts and

circumstances as alleged in the second amended motion for

judgment establish a special relationship between St. John’s

Wood and Yuzefovsky, we must also consider whether those facts

and circumstances are also sufficient to establish that St.

John’s Wood had a duty of care to warn and/or protect Yuzefovsky

against the danger of harm from the criminal conduct of a third

party.   We are of opinion that neither duty is established on

the facts and circumstances alleged in this case.



                                   15
     Although in our prior landlord-tenant cases we found no

special relationship and, thus, we did not reach the issue of

what circumstances would give rise to a duty of care on the part

of the landlord, in Wright, we observed that “[a] business

invitor owes the same duty of reasonable care to his invitee

that a landlord owes to his tenant.”    234 Va. at 530, 362 S.E.2d

at 921.   With respect to whether a particular special

relationship creates a duty to protect the invitee from the

criminal acts of a third party, we went on to say that “[i]n

ordinary circumstances, it would be difficult to anticipate

when, where, and how a criminal might attack a business

invitee.”   Id. at 531, 362 S.E.2d at 921.   Accordingly, we held

that a business owner “does not have a duty to take measures to

protect an invitee against criminal assault unless he knows that

criminal assaults against persons are occurring, or are about to

occur, on the premises which indicate an imminent probability of

harm to an invitee.”   Id. at 533, 362 S.E.2d at 922.    We hold

that this same standard applies to the determination whether a

landlord owes a duty of care to protect a tenant with whom a

landlord has a special relationship.

     There are no express allegations in Yuzefovsky’s second

amended motion for judgment that St. John’s Wood knew that

criminal assaults against persons were occurring, or were about

to occur, on the premises that would indicate an imminent

                                   16
probability of harm to Yuzefovsky or another tenant, nor can

such knowledge be reasonably implied or inferred from the

allegations made.   Moreover, Yuzefovsky’s allegations, if

proven, do not establish an imminent probability of injury to

him from a criminal assault by a third party on the premises.

There is no allegation that would support the conclusion that on

or near the date when Yuzefovsky was injured such assaults or

other crimes against persons were occurring, or about to occur,

on the premises of St. John’s Wood.     Thus, we need not consider

whether foreseeable harm at the heightened degree of probability

established in Wright existed at some other time during this

landlord-tenant relationship.   Cf. Thompson v. Skate America,

261 Va. ___, ___, ___ S.E.2d ___, ___ (2001)(decided today,

holding that imminent probability of harm is a heightened degree

of foreseeable harm).   Accordingly, we hold that the allegations

of the second amended motion for judgment are insufficient to

establish that St. John’s Wood had a duty to protect Yuzefovsky

under the facts of this case.

     Similarly, although we have not previously addressed the

question whether a business owner, including a landlord, in a

special relationship has a duty to warn an invitee or tenant of

the danger of harm from criminal activity by a third party on

the business owner’s premises, we find no reason in this case to

invoke a standard different from that used to determine whether

                                   17
there is a duty to protect.   Cf. Dudas v. Glenwood Golf Club,

261 Va. ___, ___, ___ S.E.2d ___, ___ (2001)(decided today,

applying the same standard for both duties in a business owner-

invitee relationship).   Because Yuzefovsky had resided at the

property of St. John’s Wood for approximately one year and nine

months before he was injured, we hold that there is no basis to

impose a continuing duty to warn against a danger that was not

imminent.

     For these reasons, we hold that Yuzefovsky’s second amended

motion for judgment does not establish a jury issue whether he

was in imminent danger of harm from a criminal assault by a

third party of which the defendants were aware and, thus, the

trial court did not err in sustaining the demurrer to

Yuzefovsky’s negligence claims.

                           Fraud Issues

     Yuzefovsky’s second assignment of error asserts that the

trial court erred in finding that the false statements he

alleged were made to him by employees of St. John’s Wood

concerning the safety of the development were mere opinions and,

thus, could not form the basis of a claim for fraud.    St. John’s

Wood contend that the employees’ statements concerning safety

are clearly matters of opinion and that the claim that the

development was crime-free “is so exaggerated that no reasonable

person would be justified in relying upon it.”   Expanding on

                                   18
this latter contention during oral argument, counsel for St.

John’s Wood asserted that these statements were “puffing,” that

is “[t]he expression of an exaggerated opinion-as opposed to a

factual representation-with the intent to sell a good or

service.”   Black’s Law Dictionary 1247 (7th ed. 1999).      We

disagree with St. John’s Wood.

     “It is well settled that a misrepresentation, the falsity

of which will afford ground for an action for damages, must be

of an existing fact, and not the mere expression of an opinion.

The mere expression of an opinion, however strong and positive

the language may be, is no fraud.”        Saxby v. Southern Land Co.,

109 Va. 196, 198, 63 S.E. 423, 424 (1909).       “We have not,

however, established a bright line test to ascertain whether

false representations constitute matters of opinion or

statements of fact.   Rather, ‘each case must in a large measure

be adjudged upon its own facts, taking into consideration the

nature of the representation and the meaning of the language

used as applied to the subject matter and as interpreted by the

surrounding circumstances.’ "    Mortarino v. Consulting

Engineering Services, Inc., 251 Va. 289, 293, 467 S.E.2d 778,

781 (1996)(quoting Packard Norfolk, Inc. v. Miller, 198 Va. 557,

562, 95 S.E.2d 207, 211 (1956)).

     Here, the statements alleged to have been made by the

employees of St. John’s Wood were not volunteered as part of a

                                     19
“sales pitch” to every potential tenant, but were specifically

made in response to the Yuzefovsky’s expressed concern for his

personal security.    Moreover, the specific statements that the

development was crime-free, that police officers lived there,

and that police vehicles patrolled the development are not

matters of opinion or puffing, especially when, as is alleged,

the employees knew these statements to be objectively false.

Accordingly, we hold that the trial court erred in finding that

these false statements were not fraudulent misrepresentations of

fact.

        Yuzefovsky’s third assignment of error raises the issue

whether the trial court erred in finding that, even if these

statements were fraudulent, there was no causal nexus between

the fraud and the subsequent injuries resulting from the assault

by a third party unknown to St. John’s Wood.      St. John’s Wood

contend that at best the allegations constitute a claim for

fraudulent inducement to enter into a contract and that the

damages resulting from the criminal assault more than a year and

half after the alleged act of fraud are too remote to give rise

to liability.    We agree with St. John’s Wood.

        To sustain a claim of actual fraud, the plaintiff must

prove a false representation, of a material fact, made

intentionally and knowingly, with intent to mislead, reliance by

the party misled, and resulting damage.     Evaluation Research

                                     20
Corp. v. Alequin, 247 Va. 143, 148, 439 S.E.2d 387, 390 (1994).

Moreover, the “fraud must relate to a present or pre-existing

fact, and cannot ordinarily be predicated on unfulfilled

promises or statements as to future events.”     Soble v. Herman,

175 Va. 489, 500, 9 S.E.2d 459, 464 (1940); see also Lumbermen’s

Underwriting Alliance v. Dave’s Cabinet, Inc., 258 Va. 377, 382,

520 S.E.2d 362, 365 (1999); Patrick v. Summers, 235 Va. 452,

454, 369 S.E.2d 162, 164 (1988).

     In determining whether a cause of action for fraud sounds

in contract or tort, and the damages that will arise therefrom,

the source of the duty to abstain from making the fraudulent

representation must be ascertained.     Richmond Metropolitan

Authority v. McDevitt Street Bovis, Inc., 256 Va. 553, 558, 507

S.E.2d 344, 347 (1998).   “[A] party can, in certain

circumstances, show both a breach of contract and a tortious

breach of duty.   However, ‘the duty tortiously or negligently

breached must be a common law duty, not one existing between the

parties solely by virtue of the contract.’ ”     Id. (citation

omitted).

     It is clear that the duty to refrain from making these

statements relates to the contract Yuzefovsky was induced to

sign, and not from a common law duty.    In addition, the assault

by the third party was remote in time from the execution of the

contract and, thus, the damages for which Yuzefovsky sought

                                   21
recovery under the theory of fraud did not directly result from

the fraudulent inducement to enter into that contract.

Accordingly, we hold that the trial court did not err in

sustaining the demurrer to the claim for fraud.

                           CONCLUSION

     For these reasons, we will affirm the judgment of the trial

court sustaining the demurrer to Yuzefovsky’s second amended

motion for judgment.

                                                           Affirmed.




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