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Articles Posted in Fraud

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Intentional misrepresentation claim dismissed where misrepresentation only related to future action.

Where defendants filed a counterclaim for intentional misrepresentation, but defendants’ allegations all centered around promises that plaintiffs had made to take certain actions in the future and defendants did not allege that plaintiffs had no present intention of performing when the promises were made, dismissal of the intentional misrepresentation claim…

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Dismissal of negligent misrepresentation claim affirmed.

Where the attorney for an HOA wrote plaintiff landowner a letter informing him that the HOA considered him to be in violation of certain restrictions, judgment on the pleadings in favor of defendant attorney on plaintiff landowner’s negligent misrepresentation claim was affirmed because there was no allegation that the attorney…

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Compensatory damages equal to amount plaintiff paid for home affirmed in fraud case.

Where there was material evidence to show that plaintiff met her required due diligence, the jury verdict for plaintiff on her intentional misrepresentation and fraud claim was affirmed. Further, where the fraud was related to the purchase of plaintiff’s home, and the jury awarded plaintiff the amount she paid for…

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No reasonable reliance on warranty deed where lien was publicly recorded.

Where plaintiffs claimed intentional misrepresentation based on a warranty deed stating that property being conveyed was free from encumbrances, but a bank held a lien on the property and had recorded a deed of trust eight years before the transaction, plaintiffs’ reliance on the warranty deed was not reasonable. In…

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Fraud Affirmed Where Foundation Repair Company Found to Have Sold Useless Services

Where a foundation repair company was sold a set of products and services to a plaintiff that did not actually work to stabilize her home, and where the company made many misrepresentations about the services and the processes used, the Court of Appeals affirmed an award to plaintiff for fraud.…

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No Fraud Claim Where Inspection Revealed Possible Water Issues

Where a homebuyer’s inspection of a property put them on notice that there were potential water issues in the garage before closing, the buyer could not later sustain a claim for fraud. In Fulmer v. Follis, No. W2017-02469-COA-R3-CV (Tenn. Ct. App. Dec. 20, 2018), plaintiffs had previously purchased a home…

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Dismissal of Fraud Case Overturned

Showing reliance in a fraud case does not require magic words during a plaintiff’s testimony. In Erwin v. Great River Road Supercross LLC, No. W2017-00150-COA-R3-CV (Tenn. Ct. App. Oct. 19, 2017), plaintiffs sued defendants based on a real estate purchase. Defendants had provided a warranty deed to plaintiffs that “specifically…

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Fraudulent Misrepresentation Case Falls Short

In Jackson v. CitiMortgage, Inc., No. W2016-00701-COA-R3-CV (Tenn. Ct. App. May 31, 2017), the Tennessee Court of Appeals affirmed summary judgment on an intentional misrepresentation (or fraud) claim where the plaintiffs could not establish that an “explicit promise or representation was made[.]” During the 2008 recession, plaintiffs defaulted on their…

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