When running a business, honoring contracts, working out disputes with vendors, and avoiding any fraudulent dealings is important. Cases of business fraud may arise when a person or business claims that they have been harmed by the fraudulent or deceptive conduct of a business. Both compensatory and punitive damages may be recoverable subject to the proof available. A heightened level of proof and aggravated circumstances are usually required to recover punitive damages. Regarding punitive damages, issues also sometimes arise as to whether a company can be held responsible for each and every act of an employee or about whether a company ratified or approved an employee’s misconduct.
Understanding the Details of Business Fraud
There are many ways a business deal can be fraudulent. Business fraud is more than a breach of contract dispute. When fraud occurs, one party may have intentionally withheld information or presented lies in an effort to influence the other party. When one side is dishonest about material elements of a deal and benefits from this dishonesty, the other side may have a viable case for business fraud.
Examples of business fraud are wide and varied and can arise not only in commercial settings like contract litigation but also in real estate litigation, as well as among fiduciaries in trust and estate litigation. Five common types of business fraud, include:
- Contract Litigation
- Real Estate Litigation
- Consumer Litigation
- Trust and Estate Litigation
- Misconduct in a Fiduciary Capacity
Any time one party tries to get a better deal by lying, cheating, or misrepresenting material facts, they may be committing business fraud, subject to issues of proof, and affirmative defenses.
How a Lawyer Can Help
Legal help is often needed to identify proof issues and specifics of a business fraud claim and to flesh out the details of what occurred. Business fraud may be difficult to prove, but a lawyer can investigate the situation to gauge challenges any case may pose.
At the Law Office of Ilam Smith, we are here to help. To discuss legal remedies for fraudulent or otherwise intentional misconduct, please contact the office to schedule an appointment.