Also known as: fraudulent misrepresentation · negligent misrepresentation · misrepresentation · fraudulent misrep · negligent misrep
Written by attorneys · grounded in primary & secondary sources — see below
An assertion of fact or law that is not in accord with the facts. When made knowingly with intent to induce reliance it is fraudulent. When made carelessly without reasonable basis it is negligent.
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Francois Fortier posted on his firm site that he had never lost a personal-injury trial. In fact he had lost two the prior year. A prospective client read the statement, retained Fortier, and later discovered the falsehood after an unfavorable settlement.
Frank Fisher told buyer Felicia Fuentes that the warehouse roof had been replaced last year. The roof had not been replaced. Fuentes relied on the statement and signed the purchase contract.
After judgment was entered against Fatima Flores, she discovered that opposing counsel had submitted an affidavit falsely stating that key documents had been produced. Flores moved under Rule 60(b)(3) to set the judgment aside.
Felix Franco, an accountant, issued an audit opinion without verifying inventory counts. The opinion overstated assets. Investor Farah Fox relied on the opinion and purchased shares that later proved worthless.
Husband Francois Fortier failed to disclose a hidden brokerage account during divorce negotiations. Wife Felicia Fuentes signed the settlement agreement without knowledge of the asset. She later sought to set the agreement aside.
Lawyer Frank Fisher submitted an affidavit in a disciplinary proceeding falsely claiming he had notified all clients of his suspension. The bar counsel discovered the falsehood and charged Fisher with professional misconduct.
Fraudulent misrepresentation requires knowledge of falsity and intent to induce reliance. Negligent misrepresentation requires only that the statement be made without reasonable care or basis.
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A contract is voidable if a party's assent was induced by a fraudulent or material misrepresentation on which the recipient was justified in relying.
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Yes. A communication is false or misleading if it contains a material misrepresentation of fact or law about the lawyer or the lawyer's services.
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…deserve to be considered, ignorant or incompetent, that it is rarely possible, on adequate grounds, conscientiously to stamp the misrepresentation as morally culpable; and still less could law presume to interfere with this kind of controversial misconduct." [^maj-15]: The climate in which public officials operate, especially during…