PJC Business

F RAUD AND N EGLIGENT M ISREPRESENTATION

PJC 105.7

PJC 105.7

Question on Statutory Fraud (Real Estate or Stock Transaction)

QUESTION ______

Did Don Davis commit [ statutory ] fraud against Paul Payne ?

[Insert appropriate instructions.]

Answer “Yes” or “No.” Answer: _______________

COMMENT

When to use. PJC 105.7 is appropriate for use in most cases involving claims for fraud in connection with a stock or real estate transaction under Tex. Bus. & Com. Code §27.01. The Committee recommends obtaining independent findings when there are allegations of both common-law and statutory fraud because of the different remedies available. Broad-form submission. PJC 105.7 is a broad-form question designed to be accompanied by one or more appropriate instructions. Tex. R. Civ. P. 277 requires that “the court shall, whenever feasible, submit the cause upon broad-form questions.” Tex. R. Civ. P. 277; see Thota v. Young , 366 S.W.3d 678, 689 (Tex. 2012) (rule 277’s use of “whenever feasible” mandates broad-form submission in any or every instance in which it is capable of being accomplished). For further discussion, see PJC 116.2 regarding broad-form issues and the Casteel doctrine. Accompanying instructions and definitions. PJC 105.7 should be accompanied by appropriate instructions and definitions. See PJC 105.8 and 105.9. Damages. Damages questions are set out in chapter 115. PJC 115.19 submits direct damages in fraud cases, and PJC 115.20 submits consequential damages in such cases. Although the statute does not require actual awareness of the falsity to recover actual damages, Tex. Bus. & Com. Code §27.01(b), actual awareness of the falsity must be established to recover exemplary damages. Tex. Bus. & Com. Code § 27.01(c), (d); Woodlands Land Development Co., L.P. v. Jenkins , 48 S.W.3d 415, 426 (Tex. App.—Beaumont 2001, no pet.). For recovery of exemplary damages, see Tex. Bus. & Com. Code § 27.01(c), (d); see also PJC 105.11 and 115.37–115.38.

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