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What does it mean to be a victim of fraud?
Most people have heard the term fraud, and in my practice, I often get the question, “Was I a victim of fraud?” The legal definition of fraud is multifaceted, and this post will provide an overview of what is considered fraud in Florida and will cover the following points:
- Elements of a Cause of Action-what has to be proven to win a fraud claim in Florida
- Statute of Limitations much time do you have to file a claim?
- Defenses to Fraud
- Discussion of related legal issues.
Background
A claim for fraud has existed for hundreds of years. In England, it was initially called an action for deceit. Since the early days, the courts realized that true factual statements were significant in all human relationships, especially in commercial and business relationships.
What are the four elements of proof of fraud?
To prove a fraud claim, you must show the following:
- A false statement was made about an important fact;
- The person knew the statement was false;
- The intent of the person making the statement will induce another to act on it;
- An injury suffered by the person acting in reliance on the false statement
In summary, there must be an intentional material or important false statement upon which the other party relies to his detriment.
How long do I have to file a fraud claim? (statute of limitations)
Under Florida Law, you have four years from the alleged fraud to file your claim.
What are defenses are available for fraud?
There are many defenses to fraud, listed here are some of the most common:
Lack of Damages
To prevail in a fraud case, the fraudulent statement must actually cause you provable damages. In other words, false statements alone are not legally actionable.
Sales talk or “puffing.” or opinion.
Statements of opinion by a seller are not enough to prove fraud. A buyer needs to perform due diligence before making a purchase. The misrepresentation must be one of the facts, not the opinion.
Waiver
When you could or should have known that the statement was fraudulent, there is no action for fraud. In other words, being easily able to prove a fraudulent statement would bar recovery for fraud.
Promise not performed
A mere promise to do something is typically not enough for a fraud claim unless it can be proven that the promisor intended not to honor the promise and the other elements of fraud are proven.
Related Matters
Intentional Omission
Fraud also includes intentionally omitting an important fact.
Constructive Trust
If one party defrauds another party, the injured party can have whatever benefit accrued to the fraudulent party placed in a constructive trust.
Knowledge of Falsity
There are three ways to prove that the maker of a statement knew of its falsity:
- The statement was made with actual knowledge of its falsity;
- Made with or without knowledge of its truth or falsity;
- When the person making the statement ought to have known it was false.
Proving any one of these three is sufficient to prove knowledge of falsity.
Taking legal action if you are a victim of fraud.
If you decide that you have been a victim of fraud you might be thinking about taking legal action. Let review what a fraud lawsuit might look like.
Step 1: Gather information.
The first step I take with my clients is to have my client provide me with all their evidence of fraud. This can include documents, emails, texts and so on. This evidence will be used to prove your fraud case.
Step:2: Possible resolutions
After I have reviewed the evidence I decide on some possible options. Many times, in addition to suing for fraud, I will also file for breach of contract or negligence or related causes of action.
Step 3: Filing suit.
One all my legal documents are completed and I have all the evidence to prove my case, I then proceed to file my case. For the steps in a lawsuit, see this webpage.
Ready to take the next step?
If you feel that you were a victim of fraud and are not sure what to do, contact Joel Lipinski the Tampa Bay Contract Lawyer for a free consultation at 727-643-8964 or [email protected]. You can also fill out my contact form found here.
