FRAUD – What Constitutes Fraud in California? What does a Cause of Action for Fraud by Concealment in California Mean?

FRAUD – What Constitutes Fraud in California? What does a Cause of Action for Fraud by Concealment in California Mean?

December 30, 2019

A common question we get is “[w]hat is Fraud in California” and “[w]hat constitutes Fraud in California”.  Fraud occurs in a wide range of settings, such as business transactions, contract inducement, property purchases and other similar   transactions.  A cause of action for fraud arises when a party misrepresents material facts, makes false promises, or otherwise deceives another party with the intention of depriving them of their money, property, and/or rights.

Fraud by Concealment: A cause of action of Fraud by Concealment arises when:

A defrauding party had a fiduciary relationship with a fraud victim, which imposed a duty to disclose facts, but the defrauding party did not disclose such facts. Such fiduciary relationships are imposed by law upon business partners, trustees, licensed professionals and others.  In these situations the defrauding party accused of concealment either: (a) intentionally failed to disclose certain facts; OR (b) disclosed some facts but failed to disclose other facts, making the disclosure deceptive; OR (c) intentionally failed to disclose certain facts that were known only to the concealing defrauding party, and that the fraud victim could not have discovered; OR (d) the defrauding party prevented the fraud victim from discovering certain facts

In failing to disclose certain facts, the defrauding party intended to deceive the other party by concealment.  The fraud victim unaware of the concealed facts, and had they been aware, they reasonably would have behaved differently, suffered harm and the concealment was a substantial factor in causing such harm.

A link to our article discussing FRAUDULENT CONCEALMENT OR CONCEALMENT FRAUD is embedded herein:

Causes of Action for Fraud in California: For other articles discussing the various causes of action for Fraud in California, links are included below:

For Fraud 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 about legal liability as it relates to constructive fraud, negligent misrepresentation, concealment fraud, fraudulently concealment, Intentional Fraud and Deceit, Promissory Fraud, False Promise, Conversion or breach of fiduciary we encourage you to contact our offices at 619-432-5145 for a free consultation with one of our civil fraud attorneys and fraud lawyers.


Diana Legal