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lawfraud|fraudvsbreachofcontract|statutoryfraud|fraudinrealestatetransactions|fraudulentinducement ofcontract|fraudulentconcealmentoftortorbreachaslimitationstollingtheory|fraudulentmisrepresentation| negligentmisrepresentation|breachofcontractvs.fraudclaim|DeceptiveTradePractices(DTPA)claim|

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FRAUDDEFINEDELEMENTSOFCOMMONLAWTORT Theelementsofacauseofactionforfraudare:(1)thatamaterialrepresentationwas made(2)therepresentationwasfalse(3)whentherepresentationwasmade,the speakerknewitwasfalseormadeitrecklesslywithoutanyknowledgeofthetruthand asapositiveassertion(4)thespeakermadetherepresentationwiththeintentthatthe otherpartyshouldactuponit(5)thepartyactedinrelianceontherepresentationand (6)thepartytherebysufferedinjury.InreFirstMeritBank,N.A.,52S.W.3d749,758 (Tex.2001).

Fraud Torecoveronanactionforfraud,theplaintiffmustprove:(1)amaterialrepresentationwasmade,(2)the representationwasfalse,(3)whenthespeakermadetherepresentation,heknewitwasfalseormadeit recklesslywithoutknowledgeofthetruthasapositiveassertion,(4)thespeakermadeitwiththeintentionthatit shouldbeacteduponbytheparty,(5)thepartyactedinrelianceuponit,and(6)thepartytherebysuffered injury.SolutioneersConsulting,Ltd.v.GulfGreyhoundPartners,Ltd.,237S.W.3d379,385(Tex.App.Houston [14thDist.]2007,nopet.). Toprevailonafraudclaim,aplaintiffmustprovethat(1)thedefendantmadeamaterialrepresentationthatwas false(2)thedefendantknewtherepresentationwasfalseormadeitrecklesslyasapositiveassertionwithout anyknowledgeofitstruth(3)thedefendantintendedtoinducetheplaintifftoactupontherepresentationand (4)theplaintiffactuallyandjustifiablyreliedontherepresentation,whichcausedinjury.Ernst&Young,L.L.P.v. Pac.Mut.LifeIns.Co.,51S.W.3d573,577(Tex.2001)HartfordFireIns.Co.v.C.Springs300,Ltd.,287S.W. 3d771,781(Tex.App.Houston[1stDist.]2009,pet.denied).

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ELEMENTSOFFRAUDCASESINVOLVINGFRAUDCLAIMSFROMTHE HOUSTONCOURTSOFAPPEALS
Elementsofcommonlawfraudarethat(1)amaterialrepresentationwasmade(2)therepresentationwas false (3)whenthespeakermadeitheknewitwasfalseormadeitrecklesslywithoutanyknowledgeofitstruthandas apositiveassertion(4)thespeakermadeitwiththeintentionthatitshouldbeacteduponbytheparty(5)the partyactedinrelianceonitand(6)hetherebysufferedinjury.InreFirstMeritBank,N.A.,52S.W.3d749,759 (Tex.2001).Toestablishtheelementofcausationinafraudclaim,aplaintiffmustshowthatthedefendant's actsoromissionswereacauseinfactofforeseeablelosses.ProspectHighIncomeFund,MLCBOIVv.Grant Thorton,LLP,203S.W.3d602,618(Tex.App.Dallas2006,pet.denied)(citingMarathonCorp.v.Pitzner,106 S.W.3d724,727(Tex.2003)).Thedefendant'sactsoromissionsareacauseinfactiftheplaintiffcanshow, beyondmereconjecture,guess,orspeculation,thatanactoromissionwasasubstantialfactorinbringingabout aninjurywhichwouldnototherwisehaveoccurred.Id.Aplaintiffestablishesrelianceinafraudclaimbyshowing thatthedefendant'sactsandrepresentationsinducedittoeitheractorrefrainfromacting,toitsdetriment.Id. Fraudulentinducementisaparticularspeciesoffraudthatarisesonlyinthecontextofacontractandrequires theexistenceofacontractaspartofitsproof.Haasev.Glazner,62S.W.3d795,798(Tex.2001)Clarkv. PowerMktg.Direct,Inc.,192S.W.3d796,799(Tex.App.Houston[1stDist.]2006,nopet.).Thatis,witha fraudulentinducementclaim,theelementsoffraudmustbeestablishedastheyrelatetoanagreementbetween theparties.Haase,62S.W.3dat79899. Andressv.MeahInvestmentsNo.2,Ltd.(Tex.App.Houston[1stDist]Sep.10,2009)(Keyes) (fraud,impositionofexemplarydamages) AFFIRMTRIALCOURTJUDGMENTINPART,REVERSETCJUDGMENTINPART,ANDREMANDCASETO TC FORFURTHERPROCEEDINGS:OpinionbyJusticeKeyes BeforeJusticesJennings,KeyesandHigley 010700792CVMorrisAndressv.MeahInvestmentsNo.2,Ltd. Appealfrom239thDistrictCourtofBrazoriaCounty TrialCourtJudge:Hon.PatrickEdwardSebesta

Inordertoprovefraud,aplaintiffmustshowthat(1)thedefendantmadeamaterialrepresentationthatwas false,(2)thedefendantknewtherepresentationwasfalseormadeitrecklesslyasapositiveassertionwithout anyknowledgeofitstruth,(3)thedefendantintendedtoinducetheplaintifftoactupontherepresentation,and (4)theplaintiffactuallyandjustifiablyreliedontherepresentation,whichcausedtheinjury.Ernst&Young,L.L. P.v.Pac.Mut.LifeIns.Co.,51S.W.3d573,577(Tex.2001). Woodv.TexasChiropracticCollege(Tex.App.Houston[1stDist.]July24,2008)(Jennings) (suitbystudentagainstprivateeducationalinstitution,DTPAclaim,misrepresentation,summaryjudgment affirmed,noshowingofreliance) AFFIRMTRIALCOURTJUDGMENT:OpinionbyJusticeTerryJennings BeforeJusticesTaftandJennings,TheHonorableHudson 010700952CVKellyWoodv.TexasChiropracticCollege

Toproveafraudclaim,aplaintiffmustshow(1)thatamaterialrepresentationwasmade(2)therepresentation wasfalse(3)whentherepresentationwasmade,thespeakerknewitwasfalseormadeitrecklesslywithout

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law-fraud-cause-of-action

any knowledgeofthetruthandasapositiveassertion(4)thespeakermadetherepresentationwiththeintentthat theotherpartyshouldactuponit(5)thepartyactedinrelianceontherepresentationand(6)thepartythereby sufferedinjury.InreFirstMeritBank,N.A.,52S.W.3d749,758(Tex.2001)Johnson&HigginsofTexas,Inc.v. KennecoEnergy,Inc.,962S.W.2d507,524(Tex.1998).

Bothpartiesagreethattheelementsofafraudclaimare(1)amaterialmisrepresentation,(2)thatwaseither knowntobefalsewhenmadeorwasassertedwithoutknowledgeofitstruth,(3)whichwasintendedtobeacted upon,(4)whichwasreliedupon,and(5)whichcausedinjury.SeeDowChem.Co.v.Francis,46S.W.3d237, 242(Tex.2001).Konedidnotchallengethefifthelement,injury,initsnoevidencemotionforsummary judgment. ChristusHealthv.Kone,Inc.(Tex.App.Houston[14thDist.]Jun.25,2009)(Brown) (fraudandfraudintheinducementclaimsrelatingtoacontractforelevatormaintenanceservices, onesatisfactionruledoesnotapplyhere,pleadingsufficiency,specialexceptions,affidavitfoundtobe conclusory) AFFIRMED:OpinionbyJusticeBrown BeforeJusticesAnderson,FrostandBrown 140700786CVChristusHealthandChristusHealthGulfCoastv.Kone,Inc Appealfrom127thDistrictCourtofHarrisCounty TrialCourtJudge:SharolynP.Wood Toprovefraud,apartymustestablish(1)amaterialrepresentationwasmade,(2)therepresentationwasfalse, (3)whenthespeakermadetherepresentation,heknewitwasfalseormadeitrecklesslywithoutknowledgeof thetruthandasapositiveassertion,(4)thespeakermadeitwiththeintentionthatitshouldbeacteduponby theparty,(5)thepartyactedinrelianceuponit,and(6)thepartytherebysufferedinjury.Lundyv.Masson,260 S.W.3d482,492(Tex.App.Houston[14thDist.]2008,pet.denied). Sandhuv.PingliaInvestmentsofTexas,LLC(Tex.App.Houston[14thDist.]Jun.25,2009)(Seymore) (commercialrealestatetransaction:financingofpurchaseofshoppingcenter,suitforbreachofpromissory note,summaryjudgmentprocedure,affirmativedefensesnotproperlyassertedinresponsetoPlaintiff'smotion, proofofbalancedueanddamagesinnotesuit) Decision:TRIALCOURT'SJUDGMENTAFFIRMED:OpinionbyJusticeCharlesSeymore Panelmembers:ChiefJusticeHedges,JusticesAndersonandSeymore 140800184CVRaghbirSandhuv.PingliaInvestmentsofTexas,LLCandSumerPinglia Appealfrom164thDistrictCourtofHarrisCounty Afraudcauseofactionhassixelements:(1)thatamaterialrepresentationwasmade,(2)therepresentation wasfalse,(3)whentherepresentationwasmade,thespeakerknewitwasfalseormadeitrecklesslywithout any knowledgeofthetruthandasapositiveassertion,(4)thespeakermadetherepresentationwiththeintentthat theotherpartyshouldactuponit,(5)thepartyactedinrelianceontherepresentation,and(6)thepartythereby sufferedinjury.FirstMeritBank,52S.W.3dat758.Anegligentmisrepresentationcauseofactionhasfour elements:(1)therepresentationismadebyadefendantinthecourseofhisbusiness,orinatransactionin whichhehasapecuniaryinterest,(2)thedefendantsupplies"falseinformation"fortheguidanceofothersin theirbusiness,(3)thedefendantdidnotexercisereasonablecareorcompetenceinobtainingorcommunicating theinformation,and(4)theplaintiffsufferspecuniarylossbyjustifiablyrelyingontherepresentation.Henry Schein,Inc.v.Stromboe,102S.W.3d675,686n.24(Tex.2002). Grantv.LaughlinEnvironmental,Inc.(Tex.App.Houston[1stDist.]Dec.18,2008)(Jennings) (summaryjudgmentevidence,conclusoryaffidavit,breachofcontract,quantummeruit,fraud,negligent misrepresentation)

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