Choice of Legal or Equitable Relief in New Jersey Fraud Cases
If you can prove fraud, the law provides you with a remedy of either money damages or an equitable remedy such as contract rescission or reformation. Thus, in a contract case, if someone is fraudulently induced in a contract, he or she may choose to either rescind the transaction and recover his/her provable damage(s) or affirm the transaction and sue for damages resulting from the fraud. For a more complete discussion of New Jersey business fraud in contracts, visit www.njcontractattorney.com.
Money Damages in New Jersey Fraud Cases are Called “Compensatory Damages”
The purpose of compensatory damages is to reimburse a person for his or her actual economic loss. These damages contrast to restitution damages or “benefit of the bargain” damages where the injured person seeks to recover his or her investment or the purchase price paid and forgives additional monetary and economic damages.
The Availability of Punitive Damages in New Jersey Fraud Cases
In really offensive situations, someone who commits fraud may be liable for punitive damages. Because fraud requires proof of “knowledge” or “intent”, punitive damages can be awarded by a judge or jury in a successful fraud claim.
To be liable for punitive damages, a plaintiff must establish that the other side acted with purposeful disregard knowing that they would likely be economically harmed.
New Jersey has a law known as the Punitive Damages Act which limits the amount of punitive damages that can be awarded based on actual provable damages.
What Other Action Can You Take in New Jersey When a Claim of Fraud is Made?
If you have been defrauded, you can pursue equitable remedies in New Jersey instead of looking for money damages. A New Jersey court will look to the fairness of allowing someone else to keep your money by their fraud.
An equitable remedy in New Jersey allows the court to rescind or reform the transaction to undo the economic advantage and other benefits obtained by the party who made the misrepresentation thereby restoring the parties to the status quo.
Do you have a question(s) on a claim or defense of a claim for fraud not addressed here? If so, contact Fredrick P. Niemann, Esq. toll-free at (855) 376-5291 or email him at email@example.com to schedule a consultation about your particular matter.
He welcomes your calls and inquiries and you’ll find him very approachable and easy to talk to.
Fraud Law Attorneys serving these New Jersey Counties:
Monmouth County, Ocean County, Essex County, Cape May County, Camden County, Mercer County, Middlesex County,
Bergen County, Morris County, Burlington County, Union County, Somerset County, Hudson County, Passaic County