Materiality Best to think of materiality as separate element of the tort Cannot rely on something that is not material Liability for fraudulent misrepresentation R2T §531 One who makes a fraudulent misrepresentation is subject to liability to the persons or class of persons (does not have to be specific person) whom he intends or has reason to expect to act or refrain from action in reliance upon the misrepresentation, for pecuniary loss suffered…in the type of transaction in which he intends or has reason to expect their conduct to be influenced Intend- Actor has purpose or desire to bring about a certain result Reason to expect = Highly foreseeable Reasonably foreseeable is insufficient, has to be more Maker of misrepresentation must have information that would lead a reasonable man to conclude that there is an especial likelihood that it will reach those persons and will influence their conduct Who can be a plaintiff? Class of persons- actual identity not required Someone who intended to rely, or someone that the had ∆ ∆ reason to expect to rely (highly foreseeable) Type of transaction limitation Loss must occur with respect to type of transaction contemplated Small differences in transaction details are allowed Justifiable Reliance- particular to fraudulent misrepresentation Justifiable reliance is determined in relation to a particular not by a π, community standard Subjective reliance Justifiable reliance is a lesser standard than reasonable reliance, only because it allows for two exceptions does not have a to investigate, even if reasonable P would π If preyed on vulnerability or gullibility, may still be justified in ∆ π’s π his reliance EVEN though it was NOT reasonable Standard is justifiable so that even a gullible person may recover in the event of a fraud Client can act a little dumber Contributory Negligence R2T §545A No affirmative defense of Contributory negligence Contributory negligence does not bar recovery for reliance upon a fraudulent misrepresentation Contributory negligence means you did not act as a reasonable person even if you don’t act as reasonable person, you are not barred from bringing claim and can still satisfy justifiable reliance You CAN contest the prima facie elements of case and assert that π’s his justifiable reliance was unreasonable, you are challenging an element of his claim,
Materiality Best to think of materiality as separate element of the tort Cannot rely on something that is not material Liability for fraudulent misrepresentation R2T §531 One who makes a fraudulent misrepresentation is subject to liability to the persons or class of persons (does not have to be specific person) whom he intends or has reason to expect to act or refrain from action in reliance upon the misrepresentation, for pecuniary loss suffered…in the type of transaction in which he intends or has reason to expect their conduct to be influenced Intend- Actor has purpose or desire to bring about a certain result Reason to expect = Highly foreseeable Reasonably foreseeable is insufficient, has to be more Maker of misrepresentation must have information that would lead a reasonable man to conclude that there is an especial likelihood that it will reach those persons and will influence their conduct Who can be a plaintiff? Class of persons- actual identity not required Someone who ∆ intended to rely, or someone that the ∆ had reason to expect to rely (highly foreseeable) Type of transaction limitation Loss must occur with respect to type of transaction contemplated Small differences in transaction details are allowed Justifiable Reliance- particular to fraudulent misrepresentation Justifiable reliance is determined in relation to a particular π, not by a community standard Subjective reliance Justifiable reliance is a lesser standard than reasonable reliance, only because it allows for two exceptions π does not have a to investigate, even if reasonable P would If ∆ preyed on π’s vulnerability or gullibility, π may still be justified in his reliance EVEN though it was NOT reasonable Standard is justifiable so that even a gullible person may recover in the event of a fraud Client can act a little dumber Contributory Negligence R2T §545A No affirmative defense of Contributory negligence Contributory negligence does not bar recovery for reliance upon a fraudulent misrepresentation Contributory negligence means you did not act as a reasonable person even if you don’t act as reasonable person, you are not barred from bringing claim and can still satisfy justifiable reliance You CAN contest the prima facie elements of π’s case and assert that his justifiable reliance was unreasonable, you are challenging an element of his claim,
mollbiztorts2011.docx