Also known as: swindling · fraud
Written by attorneys · grounded in primary & secondary sources — see below
A form of deceitful conduct consisting of swindling or cheating.
Esme Ellington told the homeowner she was a city inspector needing to check the furnace. Once inside the dwelling at night, she stole jewelry. The entry satisfied the breaking element because the homeowner's consent was procured by the false claim of official business.
Emmett Egan accepted the deed at closing without discovering that the seller had concealed a cracked foundation. After closing, Emmett sued for breach of the repair promise in the contract. The court allowed the claim to proceed because the seller's concealment constituted fraud that prevented merger of the contract into the deed.
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Emma Erickson filed a complaint alleging that Eastern Electric had misrepresented the safety of its wiring products. The complaint stated only that the statements were false and caused injury. The court dismissed the claim because the circumstances of the fraud, including the specific statements and the speaker's knowledge, were not pleaded with particularity.
Edgar Evers discovered that his client planned to use his legal services to submit false loan documents to a bank. After advising the client that he could not assist with the scheme, the client insisted on proceeding. The lawyer properly withdrew because continued representation would further the client's fraud.
Eduardo Enriquez formed Enigma Technologies with minimal capital and commingled its funds with his personal accounts. When a creditor obtained a judgment against the corporation, the court disregarded the corporate form because the unity of interest and use of the entity to perpetrate fraud allowed the creditor to reach Enriquez's personal assets.
Ethan Evans offered a will for probate. A contestant alleged that the testator had been induced to sign by false statements about the size of the estate. The contestant bore the burden of establishing the fraud by a preponderance of the evidence after the proponent made a prima facie showing of due execution.
Consent procured by fraud or threats constitutes a constructive breaking even if the resident opens the door. The entry remains a trespass because the apparent consent is invalid.
Merger does not bar claims based on fraud. The buyer may still sue after accepting the deed because the fraud exception prevents the contract promises from being extinguished.
The plaintiff must state with particularity the circumstances constituting the fraud, including the who, what, when, where, and how of the misrepresentations. Conditions of mind such as intent may be alleged generally.
A lawyer must withdraw when the client persists in using the lawyer's services to commit or further a crime or fraud after the lawyer has discussed the limitations on assistance.
The plaintiff must show both a unity of interest and ownership so that separate personalities no longer exist and that adherence to the corporate fiction would sanction fraud or promote injustice.
The contestant of the will has the burden of establishing fraud. The proponent first makes a prima facie showing of due execution.
…may be those which both parties might fairly be supposed to have contemplated at the time of contracting. It was argued that fraud does not alter the logical basis of liability for natural consequences and that there was ample evidence that the defendants knew the purpose for which the shaft was sent and that…