Section 8.13 Right to Rely

• Library: Tort Law 2016

2. (§8.13) Right to Rely

Not only must the victim of fraud actually rely on the alleged misrepresentation, the victim must also affirmatively plead and clearly prove a concomitant right to have so relied. See:

· Hereford v. Unknown Heirs of Tholozan, 315 S.W.2d 412, 421 (Mo. 1958)

· White v. Bowman, 304 S.W.3d 141, 151 (Mo. App. S.D. 2009)

· Vochatzer v. Pub. Water Supply Dist. No. 1 of Lafayette Cnty., 637 S.W.2d 418, 420 (Mo. App. W.D. 1982)

As a broad general rule: "The general rule is that equitable relief is unavailable for fraudulent representations where the parties deal at arm’s length, or a party relies on representations that would arouse the suspicion of one with ordinary prudence, or a party neglects means of information easily discoverable." Stander v. Szabados, 407 S.W.3d 73, 84 (Mo. App. W.D. 2013). Stated differently, a person to whom a false representation has been made has no right to rely on it if the person could have discovered the truth by exercising ordinary care and prudence, especially when the means to ascertain the truth are at hand and equally available to both parties. The trend of modern decisions, however, is to restrict rules such as caveat emptor and rules requiring diligence. As a result, a number of significant exceptions have been engrafted to the general rule stated above so that now, "[a] tort-feasor will not be heard to say that he is a person unworthy of belief and that plaintiff was negligent in trusting him and was cheated through his own credulity." Shechter v. Brewer, 344 S.W.2d 784, 788 (Mo. App. W.D. 1961).

The first exception to the general rule requiring diligence provides that, when a...