Finding out you have been de-frauded can be a shocking and even frightening experience. Especially since you probably trusted the person who committed the fraud. There’s nothing worse than the feeling of knowing someone has taken advantage of you. That doesn’t necessarily mean that you have a right to financial compensation as a result. If you believe you’ve been defrauded by another person or business there are at least four possible legal theories that may apply in your case. You’ll need to prove at least one of the theories in order to recover in a lawsuit.
To recover financially, you’ll need to prove all the elements of one of the following four types of “fraud”
- Intentional Misrepresentation
- Negligent Misrepresentation
- Concealment, or
- False Promise.
To prove a claim for intentional misrepresentation, you will need to show that the defendant made an intentionally or recklessly false statement of fact, that they intended to defraud you, that you reasonably relied on the false statement, and that you suffered quantifiable damages as a result of the misrepresentation.
To prove negligent misrepresentation you will need to prove the same elements as in a case for intentional misrepresentation, except that you will only need to prove that the defendant (the person you are suing) didn’t have a “reasonable basis” for believing that their statement of fact was true.
In order to prove a concealment claim, you will need to show that the defendant failed to disclose or concealed a material fact with the intent to defraud you, that the defendant had a duty to make the disclosure, and that you were unaware of the fact and wouldn’t have acted had you known the truth.
Finally, in a false promise case, you will need to provide that the defendant entered into a contract with you never having the intent to perform the contract.