Civil Fraud

Fraud and misrepresentation claims most often arise in a business setting after one of the parties to a sale of property or products, or to some other contractual arrangement, finds that the transaction falls short of what the other party led him or her to expect. Under Michigan law, “fraud is an intentional perversion or concealment of the truth for the purpose of inducing another in reliance upon it to part with some valuable thing or to surrender a legal right.”Eaton Corp v Easton Assocs, Inc, 728 F2d 285, 292 (6th Cir 1984) (quoting Barkau v Ruggirello  (On Rehearing), 113 Mich App 642, 647, 318 NW2d 521 (1982)). Closely related to the tort of fraudulent misrepresentation are actions for innocent misrepresentation (United States Fid & Guar Co v Black, 412 Mich 99, 115–122, 313 NW2d 77 (1981); Novak v Nationwide Mut Ins Co, 235 Mich App 675, 688–689, 599 NW2d 546 (1999); Temborius v Slatkin, 157 Mich App 587, 597, 403 NW2d 821 (1986)), negligent misrepresentation (Law Offices of Lawrence J Stockler, PC v Rose, 174 Mich App 14, 436 NW2d 70 (1989)), and silent fraud (Black, 412 Mich at 124–128).