How To Prove A Florida Constructive Fraud Claim

 

 

In Florida, a claim of Constructive Fraud is defined as:

Constructive fraud is all acts, omissions, or concealments, which involve a breach of legal duty, trust, or confidence, and results in damages to another. In some instances, the deception may be unintentional.

It simply means:

When a party deceives another party to whom they owed a duty.

There are 3 elements of the claim:

• Element 1. There was a confidential or fiduciary relationship between the plaintiff and defendant. A confidential or fiduciary relationship means that one person trusted the other to act in their best interest, like a lawyer with a client or a trustee with a beneficiary, creating a duty to be honest and fair in their dealings.
  

  Facts that might support this element look like:

  * The plaintiff entrusted the defendant with sensitive financial information, expecting it to be kept confidential.
  * The defendant served as the plaintiff’s financial advisor, creating a duty to act in the plaintiff’s best interests.
  * The plaintiff relied on the defendant’s expertise and guidance in making significant investment decisions.
  * The defendant had access to the plaintiff’s personal and financial records, establishing a trust-based relationship.
  * The plaintiff and defendant had a long-standing relationship characterized by mutual trust and reliance on each other’s integrity.

• Element 2. The defendant abused the relationship or took unconscionable advantage of the plaintiff. The defendant exploited their close relationship with the plaintiff to unfairly benefit themselves, taking advantage of the plaintiff’s trust or vulnerability in a way that was morally wrong and unjust.
  

  Facts that might support this element look like:

  * The defendant had significant control over the plaintiff’s financial decisions, often pressuring them to make investments that primarily benefited the defendant.
  * The defendant misrepresented their qualifications and expertise, leading the plaintiff to rely on their advice without independent verification.
  * The defendant exploited the plaintiff’s emotional vulnerabilities, using their trust to manipulate decisions that favored the defendant’s interests.
  * The defendant failed to disclose critical information about potential risks associated with the transactions, leaving the plaintiff unaware of the consequences.
  * The defendant engaged in a pattern of behavior that consistently prioritized their own interests over the plaintiff’s well-being, creating an imbalance in the relationship.

• Element 3. The plaintiff suffered damages as a result of the defendant’s actions. The plaintiff experienced harm or loss because of what the defendant did, which is a key part of proving a constructive fraud claim.
  

  Facts that might support this element look like:

  * The plaintiff incurred significant financial losses after relying on the defendant’s misleading statements about the investment opportunity.
  * The plaintiff experienced emotional distress due to the defendant’s deceptive practices, which led to a loss of trust in financial advisors.
  * The plaintiff was forced to sell assets at a loss to cover debts incurred as a result of the defendant’s fraudulent actions.
  * The plaintiff’s business suffered a decline in revenue directly linked to the defendant’s misrepresentation of product quality.
  * The plaintiff incurred legal fees while attempting to recover losses caused by the defendant’s fraudulent conduct.

^{(See Steigman Danese, 502 So. 2d 463 – Fla: Dist. Court of Appeals, 1st Dist. 1987. Taylor v. Kenco Chemical & Mfg. Corp., 465 So. 2d 581 – Fla: Dist. Court of Appeals, 1st Dist. 1985.)}
If you’re in court without a lawyer and plan to assert a Claim of Constructive Fraud, having a Personal Practice of Law at Courtroom5 is essential. You’ll need to make informed decisions about what to file at each phase of your case and prepare legal documents that are supported by thorough legal research and a strong analysis of the facts. Equip yourself with the tools and knowledge necessary to effectively navigate your legal journey.

Prove Your FL Constructive Fraud Claim

U.S. Civil Cases Only