13.4 Common Law- Fraud.

• Jurisdiction: Arizona

13.4 Common Law Fraud. A claim for common law fraud has nine elements: (1) a representation; (2) its falsity; (3) its materiality; (4) the speaker’s knowledge of its falsity or ignorance of its truth; (5) the speaker’s intent that it be acted upon by the recipient in the manner reasonably contemplated; (6) the hearer’s ignorance of its falsity; (7) the hearer’s reliance on its truth; (8) the right to rely on it; and (9) his consequent and proximate injury.¹⁸ Each element must be supported by clear and convincing evidence.¹⁹ “Fraud is never presumed. Nor can it be found to exist on mere suspicion as to the possibilities thereof.”²⁰ In sum, it “may never be established by doubtful, vague, speculative, or inconclusive evidence.”²¹

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Notes:

^[18]See Echols v. Beauty Built Homes, 132 Ariz. 498, 499, 647 P.2d 629, 630 (1982); accord Jennings v. Lee, 105 Ariz. 167, 461 P.2d 161 (1969); Carrel v. Lux, 101 Ariz. 430; 420 P.2d 564 (1966); Wilson v. Byrd, 79 Ariz. 302, 288 P.2d 1079 (1955); Koen v. Cavanagh, 70 Ariz. 389, 222 P.2d 630 (1950); Rice v. Tissaw, 57 Ariz. 230, 112 P.2d 866 (1941); Waddell v. White, 56 Ariz. 420, 108 P.2d 565 (1940), reh’g denied,56 Ariz. 525, 109 P.2d 843; Sims Printing Co. v. Kerby, 56 Ariz. 130, 106 P.2d 197 (1940); Stewart v. Phoenix Nat’l Bank, 49 Ariz. 34, 64 P.2d 101 (1937); Law v. Sidney, 47 Ariz. 1, 53 P.2d 64 (1936); Mutual Benefit H. & A. Ass’n v. Ferrell, 42 Ariz. 477, 27...