The following excerpt is from Continental Ins. Co. v. Ultra Systems Engineers and Constructors, Inc., 28 F.3d 105 (9th Cir. 1994):
Those same facts tend to show that licensure was misrepresented with knowledge of the falsity and with the intent to induce reliance, and that reliance was justified. That is fraud. See, e.g., Nelson v. Gaunt, 125 Cal.App.3d 623, 635, 178 Cal.Rptr. 167, 173 (1981); In re Kirsh, 973 F.2d 1454, 1458-59 (9th Cir.1992).
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