Fraud is one of the most common subjects of lawsuits filed in state and federal courts throughout the country. “Fraud” is a very broad category, and  manifests itself in a variety of ways.

Intentional misrepresentation is a statement which is false, and which is known to the speaker to be false.

Negligent misrepresentation is a false statement which the speaker does not know to be false, but which the speaker has no reasonable basis to believe is true.

A false statement may include a false promise to do something, or refrain from doing something, or to take certain action.

One may defraud another not only by affirmative statements, but also by failure to speak when obligated to do so. For instance, if one has a special relationship with another, such as that of business partner or real estate broker, his failure to disclose relevant facts, or his active concealment of relevant facts, constitutes fraud.

One who is defrauded by an intentional or negligent misrepresentation or false promise must show that he relied on the false statement or promise, and that his reliance on the false statement or promise was reasonable, in order to prevail in court on a claim of fraud.

In order to recover money “damages” on a claim of fraud, the defrauded party must show that he or she was induced by the fraud to act a certain way that directly caused him or her harm.

For articles discussing various issues relating to fraud, see the Blog section of this website.