California Cannabis Claims: Fraud

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Summary

Similarly, there are limited situations in which a fraud claim also opens the door to additional remedies provided by statute. As with most tort claims, the plaintiff must demonstrate that the defendant’s fraud proximately caused the plaintiff’s damages. So if you wait three years and a day after discovery of facts leading to a fraud claim, your claim will likely be barred. While we understand it’s completely frustrating, we often have clients ask to “throw in” a fraud claim because something they were promised doesn’t end up happening. Finally, the plaintiff must prove his/her damages that were proximately caused by defendant’s fraud.

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Welcome back to our litigation series on California cannabis claims. Fraud is one of those claims that clients believe will be easy to pursue, but it actually requires a lot of factual development and proof, even just to assert it in a complaint.  Below is a primer.

Introduction

A fraud claim requires six elements: (1) a misrepresentation, (2) knowledge of that representation’s falsity, (3) an intent to induce reliance, (4) reliance, (5) causation, and (6) resulting damages. Even in a complaint, fraud must be pleaded specifically – a plaintiff must plead facts that show the how, when, where, to whom, and by what...

Read the full article @ Canna Law Blog