Fraud California Law

FRAUD – CALIFORNIA LAW

Atari Corp. v. Ernst & Whinney, 970 F.2d 641 (9th Cir. 1992), amended and superseded on

rehearing, 981 F.2d 1025 (9th Cir. 1992)

Justifiable reliance requirement

In re Jogert, Inc, 950 F.2d 1498 (9th Cir. 1991) – elements under Cal. Law

1) misrepresentation

2) knowledge of falsity of misrepresentation

3) intent to induce reliance

4) justifiable reliance

5) damages

See also Stewart v. Ragland, (9th Cir. 1991) and Cohen v. Wedbush, Noble, Cooke, Inc.,

841 F.2d 282 (9th Cir. 1988) – cannot claim reliance “when the plaintiff could have, through the

exercise of reasonable diligence ascertained the truth of the matter.”

In re Mediscan Research Ltd., 940 F.2d 558 (9th Cir. 1991)

Intentional concealment v. affirmative misrepresentation

In re Northern Ca. Homes & Gardens, Inc., 92 B.R. 410 (9th Cir. B.A.P. 1988)

Elements of fraud – waiver – representation of opinion generally not actionable

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