13.4.3 Materiality of the Representation.

• Jurisdiction: Arizona

13.4.3 Materiality of the Representation. In addition to proving that the representation was false, a party asserting a claim for fraud must prove that the representation was material to the transaction.⁴⁶ In Arizona, courts have referenced the Restatement (Second) of Torts for guidance on whether a representation is material.⁴⁷Restatement (Second) of Torts § 538(2) (1977) states:

The matter is material if

(a) a reasonable man would attach importance to its existence or nonexistence in determining his choice of action in the transaction in question; or

(b) the maker of the representation knows or has reason to know that its recipient regards or is likely to regard the matter as important in determining his choice of action, although a reasonable man would not so regard it.

One of the comments to subsection (b) further explains:

Even though the matter misrepresented is one to which a reasonable man would not attach any importance in...