Civil test for fraud

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Civil test for fraud

Two recent Supreme Court of Canada decisions have significant impact on Civil Litigation in Ontario.

One case deals with summary judgment motions in Ontario: Hryniak v. Mauldin, 2014 SCC 7 (CanLII)

And the other deals with the test for civil fraud:

Bruno Appliance and Furniture, Inc. v. Hryniak 2014 SCC 8 

The Court clearly set out the test for Civil Fraud in Canada, and confirmed that the test included four specific elements.

(1)    a false representation made by the defendant; (2) some level of knowledge of the falsehood of the representation on the part of the defendant (whether through knowledge or recklessness); (3) the false representation caused the plaintiff to act; and (4) the plaintiff’s actions resulted in a loss.

In past cases discussing civil fraud, most of the references are made to a House of Lords decision from 1889 – Derry v. Peek (1889), 14 App. Cas. 337. Although there was not a lot of confusion with respect to the test, it is quite helpful that the SCC has now confirmed the test in very clear wording.

 

By | 2014-03-03T21:18:13+00:00 March 3rd, 2014|Blog, Groundbreaking Law|0 Comments