Monday, December 23, 2013

Civil Attorneys on Fraud for Unpaid Bonuses & Breach of Contract

Attorneys representing plaintiffs won an appeal recently, Moncada v. West Coast Quartz Corp., claiming fraud and breach of contract. The employees' civil attorneys had filed a lawsuit for unpaid bonuses promised repeatedly over the course of 5 years. The sole shareholders of the business promised bonuses and "enough for the employees to retire" if they stayed and worked for the company until it was sold. Employees were promised by shareholders that they would be rewarded for their loyalty. The bonuses were to be paid after the sell of the company. The contract dispute came into light when the business was sold and no bonuses were paid.

The civil court did dismiss some of the claims, such as intentional infliction of emotional distress and equitable estoppel. The judge upheld misrepresentation (fraud), breach of contract, and promissory estoppel. The employees' attorneys successfully argued that if the allegations were true, the actions by the defendants would coincide with promissory fraud.

Elements of Fraud:

  1. Representation made by the defendant was false
  2. The defendant intended to defraud
  3. The defendant knew the representation was false and misstated or concealed a material fact
  4. The plaintiff was unaware of the fraud and may have acted differently if made aware of the fraud
  5. The plaintiff has suffered damages as a result of the fraudulent misrepresentation
Promissory fraud is a type of fraud wherein a promise made by a defendant, without intending to ever perform it, and induces a plaintiff to enter a contract.  Attorneys know that false promises made to induce a person or entity to take action in a contract or for employment are actionable in a civil lawsuit. A claim of promissory fraud is a common way for civil attorneys to win punitive damages for breach of contract.

Promissory Fraud is often done in these industries

  • Employment
  • Real Estate
  • Securities
  • Loans

Difference between Fraud and Breach of Contract

California civil attorneys know oral contracts can be enforceable except for a few exceptions. When an oral contract or agreement is broken, in California, it can result in a court ordered breach of contract or fraud and payment of damages. The main difference between fraud and breach of contract is intent, though both can be acknowledged in court simultaneously. Experienced civil attorneys for the plaintiff also seek and successfully gain more compensation from fraud than breach of contract.

Our civil attorneys in California know how powerful a claim of fraud is and how much more effective it can be in obtaining compensation for punitive damages. However, it is vital for you to seek expert counsel from a civil attorney in pursuing fraud for breach of contract. Litigation for fraud can be costly as the elements of fraud must be proved. If the elements for fraud exists beyond hearsay and much evidence exists, your civil attorneys may counsel you on seeking a settlement and winning punitive damages without a lengthy jury trial decision. The defendant may be well aware of the fact that an expensive jury trial will result in more money paid out and lost. LibertyBell Law Group's civil attorneys always have the best interests of the client in mind. Call civil attorneys now at 855-200-ATTY (855-200-2889)  to get advice on your fraud or breach of contract matter.