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What are the elements of fraud (intentional misrepresentation)
- Intentional material misrepresentation
- Of past or present fact
- Made with scienter
- On which the plaintiff reasonably relies
When may an omission of fact be intentional misrepresentation?
- There is a fiduciary relationship
- There is an ambiguous or misleading statement that leads defendant to rely on the plaintiff
- Makes a statement thought to be truthful but doesn't disclose information once defendant learns the statement is false
- Defendant doesn't intend for plaintiff to rely on him, but later learns that plaintiff is relying on him
- Plaintiff reasonably expects disclosure
What is the requisite mental state required for intentional misrepresentation?
- The defendant knows of the plaintiff's reliance
- The defendant makes a false statement or recklessly disregards the truth
What is the general rule for negligent misrepresentation?
The defendant has no duty to avoid negligent infliction of pure economic loss, but plaintiff can recover for economic losses that flow from physical or property damages
What is the exception to the general rule for negligent misrepresentation?
If there is a special fiduciary relationship, such as attorney-client, the plaintiff may be liable
When can a third party in privity of contract recover for negligent misrepresentation?
If the defendant knows that they are acting for the benefit for a third party and the end and the aim of there actions is to benefit third party and the third party suffers economic loss, then the third party can recover for economic loss
What is the rule for third parties in privity of contract for with attorneys?
Tend only to let non-client's recover economic losses from will drafting
What are the elements for the interference with contractual relationships?
- The defendant knows that there is a contract between the plaintiff and a third party
- The defendant acts in a way that causes the contract to be breached or difficult to perform
What does the tort of Interference with Prospective Economic Advantage protect?
This tort protects the probable “expectancy” interests of future contractual relations of a party
How can a plaintiff prove that there is an Interference with Prospective Economic Advantage?
- Show that the defendant knew of the prospective of economic advantage
- Show that the defendant acted to interefere with that prospective economic advantage with improper motives
What is required to prove injurious falsehood?
- False statement
- Actual malice/knowledge of falsity/recklessly disregarded truth or falsity
- Made to another or published
- Causing specific economic injury to the plaintiff