Civil Fraud Claims in New Jersey: When You Can Sue for Being Deceived

What Is Civil Fraud?

Civil fraud (also called fraudulent misrepresentation) occurs when one party makes a false statement of material fact, knowing it is false, with the intent to induce another party to rely on it, and the other party suffers damages as a result of that reliance.

Civil fraud is distinct from criminal fraud — you do not need a criminal conviction to pursue a civil claim, and the standard of proof is lower (preponderance of the evidence rather than beyond a reasonable doubt).

Elements of a Fraud Claim in New Jersey

To prove fraud in New Jersey, you must establish:

1. A material misrepresentation of a presently existing or past fact
2. Knowledge or belief by the defendant that the representation was false
3. An intention that the plaintiff rely on the misrepresentation
4. Reasonable reliance by the plaintiff
5. Resulting damages

The New Jersey Consumer Fraud Act

The New Jersey Consumer Fraud Act (N.J.S.A. 56:8-1 et seq.) provides additional protections for consumers who are defrauded in commercial transactions. Under the CFA:

• Treble damages are available — you can recover three times your actual damages
• Attorney's fees are recoverable
• The standard of proof is lower than common law fraud

The CFA covers a wide range of deceptive practices in consumer transactions, including home improvement fraud, auto dealer fraud, and real estate fraud.

Common Types of Civil Fraud Cases

• Business acquisition fraud — misrepresentation of financials or business performance
• Real estate fraud — concealment of property defects or title issues
• Investment fraud — false promises of returns or misrepresentation of risk
• Home improvement fraud — contractors who take deposits and disappear or do substandard work
• Insurance fraud — filing false claims

Statute of Limitations

In New Jersey, fraud claims must generally be filed within 6 years of when the fraud was discovered or reasonably should have been discovered (the discovery rule).

This article is for general informational purposes only and does not constitute legal advice.