Also known as: misrepresentation · misrepresentations · misrep doctrine
Written by attorneys · grounded in primary & secondary sources — see below
An assertion that is not in accord with the facts. When material and justifiably relied upon, the assertion renders a contract voidable, supports tort liability, justifies relief from a judgment, or constitutes professional misconduct by a lawyer.
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Damian Decker placed an online advertisement claiming he had won every securities case he had tried. In reality he had lost three of the five cases. A prospective client read the advertisement, retained Decker, and later discovered the false win rate after suffering an adverse judgment. The client filed a grievance alleging professional misconduct.
Delilah Duran told buyer Deborah Dunn that a parcel contained exactly forty acres. The recorded survey showed only thirty-six acres. Dunn relied on the statement, paid the full asking price, and later discovered the shortage when she attempted to subdivide. Dunn sued to rescind the contract.
Dorothy Daniels obtained a default judgment against Dover Bank by submitting an affidavit that omitted a prior settlement payment. The bank later discovered the omitted payment and moved under Rule 60(b)(3) to set the judgment aside. The court granted relief after finding the affidavit materially misleading.
Duarte Shipping hired an appraiser who stated that a vessel's cargo capacity was 12,000 tons when the correct figure was 9,500 tons. The error resulted from the appraiser's failure to inspect the hold. A buyer who relied on the appraisal suffered a loss when the vessel could not carry the expected cargo volume. The buyer sued the appraiser for negligent misrepresentation.
Darrell Duncan presented his spouse Dolores Diaz with a proposed marital settlement that understated his pension value by $400,000. Diaz signed without independent counsel or full financial information. After learning the true value she moved to set the agreement aside on the ground of misrepresentation. The court vacated the agreement.
Drake Logistics retained counsel who failed to disclose that he simultaneously represented a competitor in a related matter. The undisclosed conflict led to adverse rulings against Drake. Drake filed a disciplinary complaint alleging that the lawyer's nondisclosure constituted misrepresentation. The grievance committee found a violation.
A misrepresentation is material if it would be likely to induce a reasonable person to manifest assent or if the maker knows it would induce the recipient to do so. Materiality is assessed from the perspective of a reasonable recipient or the maker's actual knowledge of the recipient's likely reaction.
A lawyer violates the rules by making a false or misleading communication about the lawyer or the lawyer's services. The communication is false or misleading if it contains a material misrepresentation of fact or law or omits a fact necessary to keep the statement as a whole from being materially misleading.
…She asserts that she was a passenger in the car when an accident occurred on May 19, 1955, and that as a result of the same misrepresentations her husband was induced to buy the car. She sues for personal injuries allegedly sustained in the accident. The theory of the plaintiffs' action is that the false representations of the…
…in conscious disregard of that person's rights"). The statute thereby authorizes punitive damages for the most serious kinds of misrepresentations
…by the two parties but not to an extent that they were unable to understand fully what they were doing. There was no fraud, no misrepresentation, no sharp practice and no dealing between unequal parties. The farm had been bought for $11,000 and was assessed for taxation at $6,300. The purchase price was $50,000. Zehmer admitted that…
…of which he or she is not aware. That is not the case when a defendant bases the decision to plead guilty on counsel’s express misrepresentation that the defendant will not be removable. In the latter case, it seems hard to say that the plea was entered with the advice of constitutionally competent counsel—or that it embodies a…
…his wishes; surrounding him with hired guards for the purpose of preventing personal contact between him and Vickie; making misrepresentations
Yes. Rule 60(b)(3) authorizes relief from a final judgment on the ground of fraud, misrepresentation, or misconduct by an opposing party. The rule covers both intrinsic and extrinsic misrepresentation and requires only that the misrepresentation prevented the movant from fully and fairly presenting the case.
A representation of intention may be fraudulent when the speaker knows or believes the matter is not as represented. The speaker must intend to induce reliance, the recipient must justifiably rely, and the reliance must cause damages.
A spouse may invalidate a marital settlement agreement by proving it was reached through misrepresentation. Even without affirmative misconduct, the agreement may be set aside if it is unfair or unreasonable and the challenging spouse lacked full financial disclosure or a general knowledge of the other spouse's assets.