Texas Causes of Action & Affirmative Defenses

Texas Causes of Action & Affirmative Defenses

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Friday, September 4, 2009

Proving the elements of fraud

What does it take to prevail with a fraud cause of action? [T]o recover against Smith and Langley on its fraud claim, KNC had to prove first that Smith and Langley each made an actual, material misrepresentation. Johnson v. Brown & Pritchard, 73 S.W.3d 193, 210 n. 45 (Tex. 2002). KNC also had to prove that it acted in reliance on the material misrepresentation. See Ernst & Young,51 S.W.3d at 578; Trenholm v. Ratcliff, 646 S.W.2d 927, 929-30 (Tex. 1983). “Material means a reasonable person would attach importance to and would be induced to act on the information in determining his choice of actions in the transaction in question.” Amer. Med. Int'l Inc. v. Giurintano, 821 S.W.2d 331, 338 (Tex. App.-Houston [14th Dist.] 1991, no writ). SOURCE: 05-08-00653-CV

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