FRAUD I BREACH OF FIDUCIARY DUTY – What is Constructive Fraud?
January 27, 2020
What is Constructive Fraud?
Constructive Fraud occurs when a person or entity gains an unfair advantage over another through unjust or improper means, usually by lying (i.e., making a false representation of material fact) or omitting important details (i.e., Failing to disclose a material fact). Unlike a general cause of action for Fraud, Constructive Fraud does not require intent or actual knowledge of the lie or omission.
How Does Constructive Fraud differ from Actual Fraud?
Unlike actual fraud, constructive fraud does no require an intentional deception; rather the “intent to deceive” is implied from the failure to disclose.
Moreover, actual fraud requires a showing of reliance and/or reasonable reliance; constructive fraud presumes reasonable reliance when there is a showing of nondisclosure by a fiduciary. For more about fiduciaries or breach of fiduciary duties see the links below:
What happens if a Defendant takes advantage of a Relationship of Trust? A Plaintiff can bring a cause of action for Constructive Fraud.
In order to succeed on an action for Constructive Fraud, a plaintiff must establish the following:
Conduct that is not otherwise fraudulent, may constitute a wrongful act and be sufficient grounds for constructive fraud, when a fiduciary relationship exists between the parties.
Related Articles and Publications
Causes of Action for Fraud and Breach of Fiduciary Duty in California: For other articles discussing the various causes of action for Fraud in California, links are included below:
For Fraud and Breach of Fiduciary Verdicts in California: Our articles discussing Fraud verdicts in California are included below:
Fraud Damages: Our articles discussing Fraud damages in California are included below:
Recovery from the Victims Of Corporate Fraud Compensation Fund of California: For articles discussing damages:
If you have fallen victim to fraud or have questions or fiduciary duties we encourage you to contact our offices at 619-432-5145 for a free consultation with one of our fraud attorneys and breach of fiduciary duty lawyers.