A. Fraud

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

A. Fraud

under South Carolina law, the tort of fraud requires the following elements: (1) a factual representation; (2) its falsity; (3) its materiality; (4) either knowledge of its falsity or reckless disregard of its truth or falsity; (5) intent that the representation be acted upon; (6) the hearer's ignorance of its falsity; (7) the hearer's reliance on its truth; (8) the hearer's right to rely on the representation; and (9) the hearer's consequent and proximate injury.¹ A plaintiff must prove a claim for fraud by clear, cogent, and convincing evidence, and the failure to prove any element is fatal to the claim.²

A plaintiff cannot satisfy the essential element of proving a defendant made a false representation through speculation or implication; proof must be offered that the defendant made a false representation to the plaintiff.³ The representation necessary to support a fraud claim is a representation made with the present intent to act or not act but cannot be a representation as to a future event.⁴

With regard to the reliance element required under South Carolina law, the reliance by the injured party must be reasonable in light of the totality of the circumstances.⁵ The determination of what constitutes reasonable diligence and prudence must be made on a case by case basis. Various circumstances which will be considered include the form and materiality of the representation; the respective age...