AZ Common Law Causes of Action CONSTRUCTIVE FRAUD (2011)

• Jurisdiction: Arizona

CONSTRUCTIVE FRAUD

Elements

“Constructive fraud, as contrasted to actual fraud, is a breach of legal or equitable duty which, irrespective of the moral guilt or intent of the party charged, the law declares fraudulent because of its tendency to deceive others, to violate public or private confidence, or to injure public interests. Dishonesty of purpose and intent to deceive are not essential elements of constructive fraud. Where a relation of trust and confidence exists between two parties so that one of them places peculiar reliance in the trustworthiness of another, the latter is under a duty to make a full and truthful disclosure of all material facts and is liable for misrepresentation or concealment. The breach of this duty gives rise to an action in constructive fraud.” Rhoads v. Harvey Publications, Inc., 145 Ariz. 142, 148-49, 700 P.2d 840, 846-47 (App. Div. 2, 1984) (internal citations omitted).

“Constructive fraud is defined as a breach of a legal or equitable duty which, without regard to moral...