What is the current state of the law on the doctrine of "indirect fraud"?

California, United States of America


The following excerpt is from Vega v. Carmax Auto Superstores Cal., LLC, B278249 (Cal. App. 2018):

Plaintiff also devotes several pages of briefing to a description of cases in different factual scenarios, where the courts have applied the principle that a defendant "will not escape liability if he makes a misrepresentation to one person intending that it be repeated and acted upon by the plaintiff," and "if defendant makes the representation to a particular class of persons, he is deemed to have deceived everyone in that class." (Geernaert v. Mitchell (1995) 31 Cal.App.4th 601, 605, 608-609 [seller of real property may be liable to a subsequent purchaser for "indirect fraud" where it was alleged he misrepresented or failed to disclose known material facts about soil subsidence and structural problems to his immediate purchaser, and "either

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intended or expected that the misrepresentations would be repeated and/or the nondisclosures be transmitted to plaintiffs"].)

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