13.4.5 Actor's Intent that Recipient Act Upon Representation.

• Jurisdiction: Arizona

13.4.5 Actor’s Intent that Recipient Act Upon Representation. The fifth element of a claim for fraud deals with the actor’s intent that his representation be acted upon by the recipient in a manner reasonably contemplated.⁵⁵ The actor’s intent is proven by showing he desired to cause the result or believed there was a substantial certainty that the recipient would act in such a manner, even if such result was not specifically intended.⁵⁶ Proving the actor intended for the recipient to rely upon the representation and act in a certain manner is typically proven by circumstantial evidence.⁵⁷ An example of proving the actor’s intent can be seen in Comerica Bank v. Mahmoodi.⁵⁸

In Mahmoodi, a bank brought a fraud claim against a couple, who had agreed to guarantee a revolving line of credit for their business, for allegedly falsifying accounting records.⁵⁹ The bank argued that the borrowers submitted the false statements to the bank (which were supposed to document the bank’s security interest in the borrower’s accounts receivable), knowing they were inaccurate, with the intent that the bank rely upon the statements and continue to fund the borrower’s line of credit.⁶⁰ Soon after the litigation commenced, the husband, who had submitted the statements, was rendered incapacitated from a car accident.⁶¹...