Choice of Legal or Equitable Relief in New Jersey Fraud Cases
If you can prove fraud, the law provides you with legal remedies of either money damages or equitable relief such as contract rescission or reformation. If someone is fraudulently induced to enter into 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 economic damages resulting from the fraud. For a more complete discussion of New Jersey business fraud in contracts, visit our extensive contract page at https://www.hnwlaw.com/business-law/new-jersey-contract-attorney/.
Money Damages in 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 to the transferee and waiver entitlement to additional monetary and economic damages.
The Availability of Punitive Damages in Fraud Cases
In really offensive situations, someone committing 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 offending party acted with purposeful intent knowing that the victim would likely be economically harmed.
New Jersey has a law known as the Punitive Damages Act which sets forth the amount of punitive damages that can be awarded based on the value of the 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 monetary damages. An equitable remedy in New Jersey allows the court to rescind or reform the transaction with the objective of undoing the economic benefits obtained by the party who perpetuated the fraud and restoring the parties (especially the victim) to their pre-fraud position.
Fredrick P. Niemann Esq.
Do you have a question(s) about fraud not addressed here? If so, contact Fredrick P. Niemann, Esq. toll-free at (855) 376-5291 or email him at fniemann@hnlawfirm.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