How To Prove A Florida Constructive Fraud Defense

 

 

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

Constructive Fraud occurs when a person or entity gains an unfair advantage over another through unjust means, usually by lying or omitting important details.

It simply means:

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

There are 2 elements of the defense:

• 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, which is important in proving constructive fraud.
  

  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 advice 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 plaintiff abused the relationship or took unconscionable advantage of the defendant. In a constructive fraud defense, this element means that the person bringing the lawsuit unfairly exploited their relationship with the other person, taking advantage of trust or vulnerability in a way that is considered morally wrong or unjust.
  

  Facts that might support this element look like:

  * The plaintiff consistently pressured the defendant into making decisions that favored the plaintiff’s interests, disregarding the defendant’s well-being.
  * The plaintiff had superior knowledge and experience in the relevant field, which they exploited to manipulate the defendant’s choices.
  * The plaintiff misrepresented critical information, leading the defendant to enter into agreements that were significantly disadvantageous.
  * The plaintiff isolated the defendant from independent advice, creating an environment where the defendant felt compelled to comply with the plaintiff’s demands.
  * The plaintiff took advantage of the defendant’s emotional vulnerability, using it to secure agreements that were not in the defendant’s best interest.

^{(See Steigman v. Danese, 502 So. 2d 463 (Fla. Court of Appeals 1987).)}
If you’re in court without a lawyer and plan to assert a Defense 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 present your Defense of Constructive Fraud.

Prove Your FL Constructive Fraud Defense

U.S. Civil Cases Only