Fraud and Misrepresentation

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Fraud and Misrepresentation

Fraud and Misrepresentation Lawsuits in Michigan

If you feel that you may have been the victim of fraud or misrepresentation – or if someone else is accusing you of it – it is important that you understand the basics of Michigan fraud and misrepresentation laws and obtain a lawyer immediately.  The civil litigation attorneys at Seikaly, Stewart, & Bennett are prepared to fight for your cause.  Schedule your no-obligation consultation by calling us at 866-671-8115 or filling out our contact form today.

Meeting the Michigan Criteria for Fraud

Fraud in Michigan, and in most states, is defined as a specific representation of fact meeting the following criteria:

  • The statement is known to be false by the person or company making the statement.  It is important that the representation being relied on as fact is not an expression of opinion or a promise to do something in the future. For example, a car salesman saying a vehicle is the best car on the market is puffery – an expression of opinion or praise that cannot be reasonably relied on.  However, if a salesman says only 400 of the vehicles were made and it is valuable, but it turns out there were thousands of this car made,  this may indeed qualify as fraudulent representation. A promise to do something in the future usually doesn’t qualify as a representation of fact, unless it can be shown that the person never intended to keep the promise. Thus, a statement that, “If you lend me $100, I will pay you back in a week” cannot be considered fraud unless it can be shown that the person making the promise knew they had no way of paying the money back and never intended to do so.
  • The person or company making the statement intends that their statement will be relied on.  This means that the person hearing or reading the statement is intending to take an action they would not have taken, or withhold action that they would have taken, based at least in significant part on the statement.
  • The statement is relied on by another person without them knowing it is false. Not only must the person making the statement intend that it be relied on, but it must also actually be relied on by the listener or reader. For example, if the seller of an old home says that the roof is in good condition when they know this is untrue, there is still no fraud if the buyer has a roof inspection performed and relies on that information instead.
  • The statement results in damages to the person who relied on it.  There is no claim for what almost occurred or what the wrongdoer attempted. For example, if the seller of a piece of residential real estate tells a commercial developer the property is located within School District A when it is actually located within School District B, the buyer has no fraud claim if each school district is as good as the other from the standpoint of prospective customers.

Every one of these elements is important, and if any of them is missing, there is no fraud case.  If you have been in a situation like this, you may have been the victim of fraud or misrepresentation and should call the Michigan fraud attorneys at Seikaly, Stewart & Bennett immediately.

Negligent or Innocent Misrepresentation

Michigan also permits claims for misrepresentation that were not made with malicious intent but were nonetheless false, fit the elements of fraud, and provide the person making the representation with a direct benefit. Thus, a real estate agent who repeats a statement made by a property owner – not knowing it is false – may nonetheless be responsible for innocent misrepresentation if they make commission based on a sale that would not have occurred without the misstatement.

Statutes of Limitation

In Michigan, fraud can be governed by a six-year statute of limitations when it occurs within a contract, or three years if it is fraud accomplished wholly apart from contract. In addition, if the circumstances of the fraud are concealed and unknown to the victim, the statute of limitations may not run until the victim knows or could have known that fraud occurred.

Call Seikaly, Stewart & Bennett for a No-Obligation Consultation

Damages that flow naturally and foreseeably from the fraud are recoverable. Typically, this is limited to economic damages, but in clear cases, exemplary – or emotional – damages may be awarded in Michigan.  If you believe you are the victim of fraud or misrepresentation, it is in your best interest to obtain a well-versed Michigan fraud attorney immediately.  Arrange your no-obligation consultation with the Michigan fraud lawyers at Seikaly, Stewart & Bennett by calling the phone number or filling out our contact form.

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