Understanding Intentional Tort of Fraud in Colorado

“Fraud is generally defined as [a] knowing misrepresentation of the truth or concealment of a material fact to induce another to act to his or her detriment.” (See Wolford v. Pinnacol Assurance, No. 03SC472, at *1 n.6 (Colo. Feb. 28, 2005); Black's Law Dictionary 685 (8th ed. 2004).)

Common Law Fraud Elements

“[A] person commits fraud when:

1. the person makes a false representation of a past or present fact;
2. the fact was material;
3. at the time the representation was made, the person knew the representation was false;
4. the person made the representation with the intent that another person would rely on the representation;
5. the other person relied on the representation;
6. that other person's reliance was justified; and
7. the reliance caused damages.”

(See Shaw v. 17 W. Mill St., LLC (2013) 307 P.3d 1046, 1047.)

Burden of Proof and Standard of Review for Fraud Claims

“In general, for a plaintiff to recover from the defendant on a claim of fraud he must establish, inter alia, that he relied on the misrepresentation of the defendant to his own detriment and that this reliance was reasonable under the circumstances of the case.” (See Lurvey v. Phil Long Ford (1975) 37 Colo. App. 11, 13.)

“To claim damages from allegedly fraudulent statements, the plaintiff must establish detrimental reliance on the statements.” (See PAlzado v. Blinder (1988) 752 P.2d 544, 558; Palmer v. A. H. Robins Co., Inc. (1984) 684 P.2d 187, 215.)

Notable Decisions Discussing Fraud

“The elements of fraudulent misrepresentation are a knowing misrepresentation of material fact, reliance on the material misrepresentation, the right or justification in relying on the misrepresentation, and reliance resulting in damages.” (See Williams v. Boyle (2003) 72 P.3d 392, 399; Nielson v. Scott (2002) 53 P.3d 777.)

“The misrepresentation must be made with the intent to deceive and for the purpose of inducing the other party to act upon it, and there must be evidence that the other party did in fact rely on it and was induced thereby to act to his injury or damage.” (See Club Valencia v. Valencia Associates (1985) 712 P.2d 1024, 1026-27; Knight v. Cantrell (1964) 154 Colo. 396, 390 P.2d 948.)

Current as of June 15, 2024 || Updated by Trellis Law Content Team

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