Also known as: actions for deceit · action of deceit · deceit · tort of deceit
Written by attorneys · grounded in primary & secondary sources — see below
A tort claim by which the recipient of a fraudulent misrepresentation recovers pecuniary loss caused by justifiable reliance on the misrepresentation.
Angela Acosta retained counsel for a business transaction. The lawyer falsely stated that regulatory filings had been completed to induce her signature on key documents. Relying on the statement, Angela closed the deal and later incurred substantial losses when the filings proved nonexistent. She commenced an action for deceit to recover the resulting pecuniary harm.
Alexandra Armstrong contracted with Argonaut Shipping after its representative asserted that the vessels were newly inspected and fully seaworthy. The statement was false, and reliance caused cargo damage and extra costs when the ships proved defective. Alexandra filed an action for deceit to obtain damages for the pecuniary loss traceable to her justifiable reliance.
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Anika Anand and Aisha Ahmed negotiated a divorce settlement. Aisha concealed substantial investment accounts to induce Anika to accept a lower division of property. Upon discovery of the omission, Anika brought an action for deceit seeking to invalidate the agreement and recover the value she had relinquished in reliance.
Ariana Azizi bought equipment from Arcadia Retail after the seller represented that the items met premium-grade specifications. The representation was false, and the equipment's inferior quality caused Ariana additional repair expenses beyond the purchase price. She sued in an action for deceit to recover the difference in value plus consequential loss.
Alexis Archer purchased a vehicle after the dealer stated it had passed rigorous safety inspections with no prior damage. The statements were untrue, and the car later malfunctioned, causing repair costs and lost work time. Alexis initiated an action for deceit against the dealer to recover the pecuniary losses flowing from her reliance.
Aisha Ahmed invested in a company after reviewing financial statements prepared by an accounting firm that overstated assets and understated liabilities. The misstatements induced the investment, which became worthless when the true condition surfaced. Aisha pursued an action for deceit against the firm to recover the funds lost through her justifiable reliance.
The plaintiff must show a false representation of fact, opinion, intention, or law made with knowledge of its falsity or reckless disregard for the truth, intent to induce reliance, justifiable reliance by the plaintiff, and resulting pecuniary loss.
Yes. A spouse may invalidate a settlement by proving it was reached through fraud, deceit, duress, coercion, misrepresentation, or overreaching, or alternatively by showing the agreement is unfair or unreasonable and the challenging spouse lacked full financial disclosure.
The recipient may recover the pecuniary loss caused by the misrepresentation, including the difference between the value received and the price paid, plus any additional loss that is a legal consequence of the reliance.
…to § 10(b) and Rule 10b-5 has been based on doctrines with which we, as judges, are familiar: common-law doctrines of fraud and deceit. See, e. g., Santa Fe Industries, Inc. v. Green, 430 U. S. 462, 471-477 (1977). Even when we have extended civil liability under Rule 10b-5 to a broader reach than the common law had…