C. Breach of Contract Accompanied by a Fraudulent Act

• Library: South Carolina Damages (SCBar) (2009 Ed.)

C. Breach of Contract Accompanied by a Fraudulent Act

The South Carolina Supreme Court has ruled that this cause of action is not separate from a cause of action for breach of contract but, rather, constitutes a breach of contract action with additional allegations of fraud.¹³ While this tort does not require a plaintiff to prove the elements of common law fraud,¹⁴ the plaintiff must show a fraudulent intent relating to the breaching, not merely the making of the contract.¹⁵

In a breach of contract accompanied by a fraudulent act, the existence of a motive is highly relevant in satisfying the intent element.¹⁶

To recover punitive damages for a breach of contract accompanied by a fraudulent act, a plaintiff must prove three elements: (1) that a breach of contract has occurred; (2) a fraudulent intent relating to the breach; and (3) a fraudulent act accompanying the breach.¹⁷

A "fraudulent act is any act characterized by dishonesty in fact, unfair dealing, or the unlawful appropriation of another's property by design."¹⁸ The fraudulent act must be separate...