What you have to prove

Missouri courts break a fraud claim into nine parts. In plain words, you must show:

1. someone told you something;
2. it was false;
3. it was important;
4. they knew it was false, or did not know whether it was true;
5. they meant for you to act on it;
6. you did not know it was false;
7. you believed it;
8. it was reasonable for you to believe it;
9. you lost money or were harmed because of it.

If any one part is missing, the claim fails. Most fights are about whether the fact was important, whether it was reasonable to believe it, and how much you lost.

Hiding the truth can be fraud too

Staying silent can count as a lie when the law says someone had to speak up. That can happen when one side knows something important that the other side could not reasonably find out.

This comes up a lot in the sale of homes and businesses. For example, a seller may know about a serious defect or debt that the buyer had no fair way to discover.

Careless false statements

Not every false statement is a knowing lie. Missouri also allows a claim for a careless false statement. Lawyers call it “negligent misrepresentation.” You must show:

• the person gave you information as part of their business;
• it was false because they did not take reasonable care;
• they meant it to guide you in a specific business deal;
• you reasonably relied on it;
• you lost money because of it.

The difference is intent. Fraud needs a knowing or reckless lie. A careless statement only needs a lack of reasonable care. Lawsuits often include both claims.

You must spell out the lie when you sue

Missouri rules require a fraud lawsuit to give details. You must say what was said, who said it, when, and why it was false (Rule 55.15). A vague claim can be thrown out early.

Fraud can also be a defense. If you are sued on a contract you were tricked into signing, you must raise fraud in your written answer.

How long you have

This rule protects people from fraud that was well hidden. But there is an outer limit. If you do not discover the fraud within ten years, you lose the claim. If you suspect fraud, write down when and how you found out.

If you bought something for your home or family

Missouri has a consumer fraud law for people who buy or lease things mostly for personal, family or household use. You must show you lost money, you acted as a reasonable buyer would, and the practice would lead a reasonable person to buy. A court can award extra damages to punish the seller, plus legal fees. See punitive damages in Missouri.

Fraud can even undo a court judgment. If the other side won a case by lying, you can ask the court to set the judgment aside. You must ask within a reasonable time, and no later than one year after the judgment.

What to do next

1. Gather the exact statements: emails, ads, disclosure forms, financial reports and notes of calls.
2. Compare each statement with what was actually true at the time.
3. Write down what you decided because of each statement.
4. Add up what you lost.
5. Talk to a lawyer early, so the other side’s records can be preserved.

Fraud claims often go along with breach of contract and business litigation claims from the same deal.

Common questions

Related reading

• Civil litigation overview
• Business litigation
• Buying or selling a business
• Punitive damages in Missouri