Legal Memorandum: Promissory Fraud in CA

Issue: What are the elements of an action for promissory fraud under California law?

A cause of action for fraud is established by proof of (a) a knowingly false representation by the defendant, (b) made with the intent to deceive or to induce reliance by the plaintiff, (c) justifiable reliance by the plaintiff, and (d) resulting damages.  See A s "Service by Medallion, Inc. v. Clorox Co. (1996) 44 C" c 1 l "Service by Medallion, Inc. v. Clorox Co. (1996) 44 Cal. App. 4th 1807"Service by Medallion, Inc. v. Clorox Co. (1996) 44 Cal. App. 4th 1807, 1816.  A defendant is not shielded from liability for his fraudulent misrepresentations just because the false statements are made to a third party who repeats them to the plaintiff, if the defendant knew or had reason to expect that the false statements would be repeated or their substance communicated to the plaintiff.  See A s "Geernaert v. Mitchell  (1995) 31 Cal. App. 4th 601, " c 1 l "Geernaert v. Mitchell  (1995) 31 Cal. App. 4th 601"Geernaert v. Mitchell  (1995) 31 Cal. App. 4th 601, 605-06. 

Promissory fraud is actionable where the defendant’s false promises have induced plaintiff’s detrimental reliance, even if the promises could not be enforced contractually.  See A s "Lazar v. Superior Court (1996) 12 Cal. 4th 631, 63" c 1 l "Lazar v. Superior Court (1996) 12 Cal. 4th 631"Lazar […]