PLEADING FRAUD or and MISREPRESENTATION IN A COMPLAINT:

PLEADING FRAUD / MISREPRESENTATION IN A COMPLAINT:

In California, fraud must be pled in the complaint specifically.  General and conclusionary allegations are not sufficient. (Stansfield v. Starkey (1990) 220 Cal.App.3d 59, 74; Nagy v. Nagy (1989) 210 Cal.App.3d 1262, 1268)

Unlike most causes of action where the “the policy of liberal construction of the pleadings,” fraud requires particularity, that is, “pleading facts which show how, when, where, to whom, and by what means the representations were tendered.” (Stansfield v. Starkey (1990) 220 Cal.App.3d 59, 73; Lazar v. Superior Court (1996) 12 Cal.4th 631, 645.)

Every element of a fraud cause of action must be alleged both factually and specifically. (Hall v. Department of Adoptions (1975) 47 Cal.App.3d 898, 904; Cooper v. Equity General Insurance (1990) 219 Cal.App.3d 1252, 1262.)

In a case where misrepresentations are repeated often, the plaintiff must at least allege a representative selection of the misrepresentations sufficient enough for the trial court to ascertain if the statements were material and actionable. (Goldrich v. Natural Y Surgical Specialties, Inc. (1994) 25 Cal.App.4th 772, 782-783; Committee on Children’s Television, Inc. v. General Foods Corp. (1983) 35 Cal.3d 197, 216 and 218.)

Less specificity and particularity is required when the allegations indicate that the defendant necessarily possesses full information concerning the facts of the controversy or “when the facts lie more in the knowledge of the opposite party ….” (Bradley v. Hartford Acc. & Indem. Co. (1973) 30 Cal.App.3d 818, 825; Turner v. Milstein (1951) 103 Cal.App.2d 651, 658; Committee On Children’s Television, Inc. v. General Foods Corp. (1983) 35 Cal.3d 197, 216-217.)

 

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Author: timothymccandless

I have spent most of my professional life helping people who were being taken advantage of by systems they did not fully understand. As an attorney, I represented consumers against predatory lending practices and worked in elder law protecting seniors from fraud. My family lost $239,145 to identity theft, which became the foundation for my seniorgard.onlime and deepened my commitment to financial education. Since 2008, I have maintained a blog at timothymccandless.wordpress.com providing free financial education. Not behind a paywall. Free, because financial literacy should not cost money. I trade with real money using the exact strategy described in this book. My current positions: Pfizer at $16,480 deployed generating $77,900 per year net. Verizon at $29,260 deployed generating $51,000 per year net. Combined: 293% annualized pace. These are my only active positions. Not cherry-picked.

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