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Fraud Claims

Civil Fraud Claims

Civil Fraud Solicitors in London

Our fraud solicitors specialise in civil claims for fraud and fraudulent misrepresentation. Victims of fraud must act swiftly and decisively to trace and recover assets and prevent a fraudster from disposing of them.

Civil fraud can arise in a variety of contexts, such as:

  • Fraudulent statements. A party may have induced another into entering a contract by making a fraudulent misrepresentation, that is, a statement which is false and which the party making it knew to be false. An example may be, in the context of a residential property purchase, a seller stating in the Property Information Form that there are no disputes relating to the property when in fact the seller is involved in boundary litigation with his neighbour. Importantly, damages awarded in fraudulent misrepresentation cases can be more extensive than in cases of innocent or negligent misrepresentation. The damages awarded can extend to damages that were not foreseeable.
  • Misappropriation of property. Embezzlement by an employee is a classic situation in which a fraud claim can be brought in the civil courts. The basis of the claim being that, in misappropriating the employer’s property, the employee has breached his or her fiduciary duties and contractual duties of fidelity and good faith.
  • Fraudulent trading by a company director. Liquidators can bring such claims against directors under the Insolvency Act 1986 where, prior to the appointment of a liquidator, a company has carried on its business with the intention of defrauding creditors.

If you are a claimant in a civil fraud claim, you will invariably be making allegations of dishonesty against the defendant. If you have a good arguable case and the defendant has assets that are at risk of dissipation, you may be able to obtain a freezing injunction to safeguard against a situation where the court awards you damages but the defendant has no assets with which to pay.

It should be borne in mind that care must be taken in alleging fraud. There is an obligation to explain the fraud to the court in great detail, which our civil fraud solicitors do not take lightly. Courts can award costs sanctions against parties alleging fraud without credible basis to do so.

To find out more, you can contact a solicitor at South Bank Legal today for a confidential discussion.