{"id":13001,"date":"2018-02-04T23:16:39","date_gmt":"2018-02-04T23:16:39","guid":{"rendered":"https:\/\/reunitethestates.org\/?page_id=13001"},"modified":"2018-02-08T04:48:16","modified_gmt":"2018-02-08T04:48:16","slug":"constructive-fraud-unintentional-deception-or-misrepresentation-that-causes-injury-to-another","status":"publish","type":"page","link":"https:\/\/reunitethestates.org\/?page_id=13001","title":{"rendered":"Constructive Fraud – unintentional deception or misrepresentation which injures another"},"content":{"rendered":"

\u00a0\u00a0\u00a0\u00a0 This page is continued from Criminal Law Self-Help Walkthrough<\/a> >>>> Types of Crimes and Corresponding Laws<\/a> >>>> Fraud<\/a>:<\/span>
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constructive fraud<\/span>:<\/span>
\n<\/strong>(18c)<\/span><\/p>\n

1. Unintentional deception or misrepresentation that causes injury<\/a> to another. <\/strong><\/span><\/p>\n

2.<\/strong> See fraud in law<\/em><\/strong><\/span>. \u2014 aka legal fraud<\/strong><\/em><\/span>; fraud in contemplation of law<\/strong><\/em><\/span>; equitable fraud<\/strong><\/em><\/span>; fraud in equity<\/strong><\/em><\/span>. [1]<\/span><\/p>\n

1. Legal fraud as distinguished from actual fraud<\/a>, being presumed from the relation of the parties to a transaction or from the circumstances under which it takes place, not necessarily a matter of conscious wrongdoing.\u00a0 37 Am J2d Fraud \u00a7 4<\/span>.<\/strong><\/span>
\n \u00a0\u00a0\u00a0\u00a0\u00a0 In its generic sense, “constructive fraud” comprises all acts, omissions, and concealments involving a breach of legal or equitable duty<\/a>, trust, or confidence which result in damage to another.\u00a0 Constructive fraud exists in cases in which conduct, although not actually fraudulent, ought to be so treated \u2014 that is, in which such conduct is constructive or quasi fraud which has all the actual consequences and legal effects of actual fraud<\/a>.\u00a0 Re Arbuckle’s Estate, 98 Cal App 2d 562, 220 P2d 950, 23 ALR2d 372<\/span>.<\/strong> [2]<\/span><\/p>\n

1. A breach of duty<\/a>, trust, or confidence that results in damage to another; it does not necessarily involve conscious wrongdoing.<\/strong> [3]<\/span><\/p>\n

\u00a0\u00a0\u00a0\u00a0 Excerpt from Encyclopedia of Criminology<\/a> 175 (Vernon C. Branham 8: Samuel B. Kutash eds., 1949), s.v. \u201cFraud.\u201d:<\/strong><\/span><\/p>\n

\u00a0\u00a0\u00a0\u00a0 \u201cIn equity law the term fraud has a wider sense, and includes all acts, omissions, or concealments by which one person obtains an advantage against conscience over another, or which equity or public policy forbids as being to another\u2019s prejudice; as acts in violation of trust and confidence.\u00a0 This is often called constructive, legal, or equitable fraud, or fraud in equity<\/span>.\u201d <\/strong>[4]<\/span><\/p>\n

legal fraud<\/span>:<\/strong><\/span><\/p>\n

1. Often regarded as synonymous with constructive fraud.\u00a0 Precisely, actual fraud<\/a>, that is, fraud of which the law will take cognizance as a cause of action or foundation of a defense.
\nFraud without damage, or damage without fraud gives no cause of action, but when these two concur, an action lies.\u00a0 This has long been recognized as the governing rule.\u00a0 But the rule has been obscured by the judges in their use of the phrase “legal fraud,” which has sometimes been interpreted as a meaning fraud by construction, and as indicating that something less than actual fraud may sustain an action for deceit.\u00a0 The gravamen of the action, however, is actual fraud, and nothing less will sustain it.\u00a0 Kountze v Kennedy<\/em>, 147 NY 124, 41 NE 414<\/span>. <\/strong>[2]<\/span><\/p>\n

fraud in law<\/span>:<\/span>
\n<\/strong>(17c)<\/span><\/p>\n

1.<\/strong> Fraud that is presumed under the circumstances, without regard to intent, usually through statutorily created inference.\u00a0 *\u00a0 Fraud may be presumed, for example, when a debtor transfers assets and thereby impairs creditors\u2019 efforts to collect sums due.\u00a0 This type of fraud arises by operation of law, from conduct that, if sanctioned, would (either in the particular circumstance or in common experience) secure an unconscionable advantage, irrespective of evidence of an actual intent to defraud. <\/strong>\u2014 aka constructive fraud<\/strong><\/em><\/span>.\u00a0 [1]<\/span><\/p>\n

References:<\/span><\/span><\/strong><\/p>\n

Disclaimer:<\/span><\/span><\/strong> All material throughout this website is compiled in accordance with Fair Use<\/a>.<\/span><\/strong><\/p>\n

[1]: Black\u2019s Law Dictionary\u00a0Deluxe Tenth Edition\u00a0by Henry Campbell Black & Editor in Chief Bryan A. Garner<\/a>. ISBN: 978-0-314-62130-6<\/b><\/span><\/strong><\/p>\n

[2]: Ballantine\u2019s Law Dictionary\u00a0<\/a><\/b><\/span><\/strong>with Pronunciations
\n<\/b><\/span><\/em>Third Edition<\/b><\/span><\/strong><\/a>\u00a0by James A. Ballantine\u00a0<\/b><\/span><\/strong>(James Arthur 1871-1949).\u00a0\u00a0<\/b><\/span><\/em>Edited by William S. Anderson.\u00a0\u00a0\u00a9 1969 by THE LAWYER\u2019S CO-OPERATIVE PUBLISHING COMPANY.\u00a0 Library of Congress Catalog Card No. 68-30931<\/b><\/span><\/strong><\/p>\n

[3]:\u00a0\u00a0Ballantine\u2019s Law Dictionary <\/a><\/b><\/span><\/strong>Legal Assistant Edition<\/b><\/span><\/a><\/em>
\nby Jack Ballantine\u00a0<\/b><\/span><\/strong>(James Arthur 1871-1949).\u00a0\u00a0<\/b><\/span><\/em>Doctored<\/b><\/span><\/a><\/strong>\u00a0<\/b><\/span><\/em>by\u00a0Jack G. Handler,\u00a0J.D.<\/a>\u00a0\u00a9 1994 Delmar by Thomson Learning.\u00a0 ISBN 0-8273-4874-6.<\/b><\/span><\/strong><\/p>\n

[4]: Encyclopedia of Criminology<\/a> 175 (Vernon C. Branham 8: Samuel B. Kutash eds., 1949), s.v. \u201cFraud.\u201d<\/strong><\/span><\/p>\n

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