Also known as: false statement · misleading statement · false statements · misleading statements · misrepresentation
Written by attorneys · grounded in primary & secondary sources — see below
A communication containing a material misrepresentation of fact or law or omitting a fact necessary to make the statement considered as a whole not materially misleading.
Frank Fisher, representing Fidelity Trust before a federal judge, cites two favorable precedents but withholds a controlling adverse decision from the same circuit that directly undermines his client's position. The judge relies on the incomplete presentation and rules for Fidelity Trust. Opposing counsel later discovers the omission and moves for sanctions.
Francisco Frost tells buyer Felicia Fuentes that the warehouse roof is brand new when he knows it was repaired after storm damage two years earlier. Felicia signs the purchase agreement relying on the statement. After closing she discovers leaks requiring full replacement.
Select any source to read its text and confirm it supports the definition.
Floyd Franklin's counsel in a contract suit fails to produce internal emails showing his client knew the delivered goods were defective. After judgment for Franklin the opposing party obtains the emails through a third-party subpoena and moves under Rule 60 to set aside the judgment.
Fumiko Fujimoto testifies in a civil fraud trial. The defendant seeks to impeach her with a ten-year-old federal conviction for filing a false tax return. The court determines that the elements of the crime required proof of a dishonest act or false statement.
Freeman Engineering's project manager tells a subcontractor that soil tests show stable bedrock when the reports actually indicate shifting clay. The subcontractor relies on the report and incurs extra foundation costs. The subcontractor later sues for negligent misrepresentation.
Fatima Flores signs a marital settlement agreement after her husband states under oath that he has disclosed all brokerage accounts. She later learns he omitted a $2 million account opened during the marriage. She petitions to set aside the agreement.
An omission renders a communication false or misleading when it leaves out a fact necessary to keep the statement as a whole from being materially misleading under Model Rule 7.1.
Supporting sources
No. Under Restatement (Second) of Contracts § 159 a misrepresentation is simply an assertion not in accord with the facts, and it may be innocent yet still render the contract voidable if material and relied upon.
Supporting sources
Yes. Federal Rule of Civil Procedure 60(b)(3) permits relief from a final judgment on the ground of fraud, misrepresentation, or misconduct by an opposing party.
Supporting sources
Federal Rule of Evidence 609(a)(2) requires admission of any conviction whose elements required proving a dishonest act or false statement, regardless of punishment.
Supporting sources
Yes. Restatement (Second) of Torts § 304 recognizes that a misrepresentation of fact or law may constitute negligent conduct giving rise to liability.
Supporting sources