Autumn Training Day – Fraud, Deceit & Dishonesty


The top 10 things to think about:

  1. Thinking outside the box: deceit as a stand-alone basis for a claim.
  2. Deceit: the closest we get to pure allegation of fraud.

“First, in order to sustain an action of deceit, there must be proof of fraud, and nothing short of fraud will suffice. Secondly, fraud is proved, when it is shewn that a false representation has been made (1) knowingly, or (2) without belief in its truth, or (3) recklessly, careless whether it be true or false. Although I have treated the second and third as distinct cases, I think the third is but an instance of the second, for one who makes a statement under such circumstances can have no real belief in the truth of what he states. To prevent a false statement being fraudulent, there must, I think, always be an honest belief in its truth. And this probably covers the whole ground, for one who knowingly alleges that which is false, has obviously no such honest belief. It matters not that there was no intention to cheat or injure the person to whom the statement was made.”

Lord Herschell in Derry v Peek (1889) 14 App Cas 337.

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