Fraud and deceit

In the State of Georgia, there are a variety of intentional tort theories under which victims may recover damages.  A common species of intentional tort is fraud (and the related claims of negligent misrepresentation and breach of a confidential relationship/breach of a fiduciary duty).

Generally, fraud exists where a material misrepresentation is made by a person and another reasonably relies upon the misrepresentation to his/her detriment.  Fraud can occur through affirmative misrepresentations (express lies) or through silence when the circumstances reasonably require a person to disclose information to correct a material misunderstanding.  Where a person has a duty to be honest and candid with another based upon a special relationship (such business partners) and the duty is breached, additional fraud-related claims can arise under Georgia law.  In such an instance, the party damaged can assert claims for breach of fiduciary duty/breach of a confidential relationship for the harm caused by an abuse of trust.

A lesser tort (in terms of culpability) exists in the form of negligent misrepresentation.  Negligent misrepresentation is similar to fraud, however, unlike fraud a person need not know that the representation made is actually false in order to be liable.  In other words, a person can be held responsible for making a reckless representation (which is reasonably likely to be inaccurate) even though the falsity of the representation is not absolutely known to speaker.

In cases involving fraud (and related claims), economic loss is often the result and such a loss can be recovered in the form of special damages.  However, Georgia law also permits a party to recover punitive damages as punishment and deterrence against a fraudulent actor.

The Dow Firm, P.C. has handled several fraud/fraud-related cases arising out of business and personal relationships and has secured many sizeable recoveries for clients who have been harmed due to another party’s deceit.