Fraudulent Misrepresentation Elements Information
Elements of fraudulent misrepresentation: a false statement of fact (the defendant made a false representation about: a material fact, not a mere opinion or puffery), knowledge of falsity (scienter: the defendant knew the statement was false when made, or made it recklessly without knowledge of its truth), intent to induce reliance (the defendant made the statement to: induce the plaintiff to act upon it), justifiable reliance (the plaintiff reasonably relied on the false statement: the reliance must be justified under the circumstances), and damages (the plaintiff suffered: actual loss as a result of the reliance). Distinguished from: negligent misrepresentation (the defendant honestly but carelessly made the false statement), innocent misrepresentation (the defendant did not know the statement was false), and breach of warranty (a contractual claim based on: the product or service not meeting the warranted standard).
Florida Legal Definition
Fraudulent misrepresentation in Florida is governed by: Florida common law. Under Florida case law: the elements are: a false statement concerning a specific material fact, the defendant's knowledge that the statement was false (or reckless disregard for the truth), the defendant's intent that the plaintiff act on the statement, the plaintiff's reliance on the statement, and the plaintiff's resulting injury and damage. Under §817.034 (Florida Communications Fraud Act): fraudulent schemes involving: communications (phone, email, or mail) may also be: criminally prosecuted. Under Florida practice: the fraud claim must be: pleaded with specificity (the complaint must state: the specific misrepresentation, when it was made, who made it, and how the plaintiff relied on it).
How It's Used in Practice
Attorneys litigate fraud claims for plaintiffs and defendants. For plaintiffs, the attorney: identifies the false statement (the specific misrepresentation of material fact), demonstrates the defendant's knowledge (or recklessness: internal documents, prior knowledge, and expert opinions showing the defendant knew the statement was false), proves reliance (the plaintiff's actions were based on the false statement), calculates the damages (the out-of-pocket loss, benefit-of-the-bargain damages, or consequential damages), and pursues punitive damages (if the fraud was: willful and egregious). For defendants, the attorney: challenges the falsity (the statement was true or substantially true), argues opinion or puffery (the statement was an opinion, not a factual assertion), challenges reliance (the plaintiff did not actually rely, or the reliance was not justifiable), and challenges damages (the plaintiff's loss was not caused by the misrepresentation). The attorney advises: fraud must be pleaded with specificity; vague allegations are insufficient.
Key Takeaways
- Fraud: false statement + knowledge + intent + reliance + damages.
- Must be pleaded with specificity.
- Punitive damages available for willful fraud.
- Distinct from: negligent misrepresentation and breach of warranty.
- §817.034: FL Communications Fraud Act for criminal prosecution.
Disclaimer: The information and opinions provided are for general educational, informational or entertainment purposes only and should not be construed as legal advice or a substitute for consultation with a qualified attorney. Any information that you read does not create an attorney–client relationship with Barnes Walker, Goethe, Perron, Shea & Johnson, PLLC, or any of its attorneys. Because laws, regulations, and court interpretations may change over time, the definitions and explanations provided here may not reflect the most current legal standards. The application of law varies depending on your particular facts and jurisdiction. For advice regarding your specific situation, please contact one of our Florida attorneys for personalized guidance.
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