Can I Be Defrauded because someone failed to disclose information?
Yazd v. Woodside Homes Corp., 2006 UT 47, ¶17 (Utah 2006).
“To prevail on a claim [for] fraudulent nondisclosure, a plaintiff must prove by clear and convincing evidence that (1) the defendant had a legal duty to communicate information, (2) the defendant knew of the information he failed to disclose, and (3) the nondisclosed information was material.” See Anderson v. Kriser, 266 P.3d 819 (Utah 2011).
Information is said to be material if it is “of such a nature that knowledge of the item would affect a person’s decision-making[.]” Black’s Law Dictionary pg. 998. Standards of materiality may shift in different types of transactions, particularly if the standards are based on regulations or statutes specific to a profession.
Who was required to make the disclosure?
For many fraudulent non-disclosure claims, the first element requiring a duty to disclose is the most difficult hurdle to overcome.
In many fraudulent non-disclosure claims, the non-disclosure is tied to a fiduciary duty to disclose (as well as to a breach of fiduciary duty case of action).
not discoverable by reasonable careirst Security Bank of Utah v. Banberry Development Corp.,
P.2d 1326, 1331 (Utah 1990]
For more specific information about this particular subject, please call my office at 801-691-7770 for a free consultation or see the following web pages:
1. Whiting & Jardine, LLC Home Page: www.WhitingJardine.com
2. Litigation: http://whitingjardine.com/services.php?part=litigation
3. Sales & Purchase Agreements: http://whitingjardine.com/practice_areas.php?part=purchase
4. Transactions: http://whitingjardine.com/services.php?part=transactions
Contract Negotiation and Drafting: http://whitingjardine.com/practice_areas.php?part=contract
6. Fiduciary Duty Litigation: http://whitingjardine.com/practice_areas.php?part=fiduciary
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