Also known as: fraud · injustice
Written by attorneys · grounded in primary & secondary sources — see below
Circumstances involving deceit or unfair treatment that justify an exception to a general legal rule or doctrine. The phrase supplies the equitable trigger that prevents a formal rule from producing an unjust result.
Faith Fitzgerald tells the homeowner she is a city inspector needing to check the furnace. Once inside she steals jewelry. The entry satisfies the breaking element because the homeowner's consent was obtained through fraud.
Flora Ford buys a house from Francois Fortier. The contract promises a new roof, but the deed is silent. After closing she discovers the roof leaks. Because the seller concealed known defects, the fraud exception prevents merger from extinguishing her claim.
Finn Fletcher sues Fairfield Bank for securities fraud. His complaint alleges only that the bank made false statements. The court dismisses because the circumstances of the fraud must be pleaded with particularity under the governing rule.
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Frederick Ferguson learns his client plans to use legal services to sell counterfeit goods. After the lawyer warns the client, the client persists. The lawyer must withdraw because continued representation would further a fraud.
Floyd Franklin runs Ferrum Metals as a shell with no assets or formalities. When a supplier sues for unpaid invoices, the court disregards the corporate form because adherence would sanction fraud and promote injustice.
Fisher Foods contests a will that leaves everything to a distant relative. The contestant must prove the will was procured by fraud. Failure to meet that burden leaves the will intact and the estate distributed according to its terms.
Fraud or injustice supplies an exception to the merger doctrine. When a seller conceals known defects or makes promises not reflected in the deed, the buyer may still enforce those promises after closing.
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The plaintiff must prove both unity of interest between shareholder and corporation and that respecting the corporate form would sanction fraud or promote injustice. Undercapitalization and disregard of formalities are relevant factors but insufficient alone.
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Consent obtained by fraud does not count as valid consent. Entry gained through lies or threats therefore satisfies the breaking element even without physical force.
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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 explained the limits of permissible assistance.
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The contestant must establish lack of testamentary capacity, undue influence, fraud, or revocation by a preponderance of the evidence. The proponent first bears the burden of proving due execution.
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…make the statement made untrue." 786 F. 2d, at 749. The Court of Appeals joined a number of other Circuits in accepting the "fraud-on-the-market theory" to create a rebuttable presumption that respondents relied on petitioners' material misrepresentations, noting that without the presumption it would be impractical to…