What is the test for a pleading of fraudulent misrepresentation?

Ontario, Canada


The following excerpt is from McKenna v. Gammon Gold Inc., 2010 ONSC 1591 (CanLII):

A pleading of fraudulent misrepresentation requires that there be: (a) a false representation of fact; (b) made with knowledge of its falsehood or recklessly, without belief in its truth; (c) with the intention that it should be acted upon by the plaintiff; and (d) actually inducing the plaintiff to act on it to his or her detriment: Parna v. G & S Properties Ltd. 1970 CanLII 25 (SCC), [1971] S.C.R. 306, (1970), 15 D.L.R. (3d) 336.

In Mondor v. Fisherman (2002), 22 C.P.C. (5th) 346, [2002] O.J. No. 1855, Cumming J. permitted a claim to proceed in a class action where the plaintiff alleged that the defendants were “willfully blind” and that they were reckless in their negligent misrepresentation, “not caring whether it was true or false.” There is no such pleading in this case. Apart from the request in para. 3(e) of the statement of claim for a declaration that the misrepresentations were made recklessly, and the heading before para. 202, there is no pleading of recklessness or willful blindness and certainly no pleading of fraud.

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