Complex Business Litigation Attorneys

In business litigation, fraud arises in a variety of contexts, including contract disputes, the purchase and sale of goods, and securities transactions.  A person has committed fraud when that person makes a misrepresentation of fact, with knowledge that the representation is false, and with intent that the misstatement be relied upon.  The fraud claim is complete when a plaintiff demonstrates that it justifiably relied upon the misrepresentation, and as a direct result, has suffered damages.  Fraud claims may take several forms, including legal, equitable, negligent, and constructive fraud.  Remarkably, equitable fraud is an exception to the general rule that the person committing the fraud possess knowledge that its representation is false.  Equitable fraud allows for remedies such as rescission of a contract induced by this kind of fraud.  When a person has a duty to disclose material facts, but conceals them, this is known as fraudulent concealment.  Typically, in order to maintain a fraudulent concealment claim, the plaintiff must demonstrate a contractual, confidential, or fiduciary relation that gives rise to the potential defendant’s duty to speak.  Negligent misrepresentation claims also require some kind of relationship between the plaintiff and defendant giving rise to the defendant’s duty to disclose.  Damages incurred as a result of fraud may be equitable or legal.  Legal damages include compensatory and punitive damages.
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