Full question:
My husband and I are landlords. Our son has taken over showing the apartments. He recently showed an apartment to a client, received money from them, receipted the money for rent/security upon application approval and then brought the application home for follow-up and approval. Upon seeing the name, we realized it was someone we had received a judgment for from a previous rental experience that our son was not aware of. At the time of the previous judgment they gave us a paper signed by them stating they would pay us when they had money. We called the people immediately, told them we would not be renting to them because of previous amount due but would be keeping their money as payment on account. They are now filing criminal charges against us claiming fraud and demanding return of the money. As we are owed this money and much more, we have refused to return it. Is there any precedent for our keeping the money as we feel we were honest with them and did not intend fraud. They also continued to seek apartments so there was no hardship.
- Category: Judgment Liens
- Date:
- State: Wisconsin
Answer:
To prove fraud, there must be evidence of intent to deceive. If someone relies on a misleading promise and suffers harm, they may recover damages. Fraud can also occur through omission of important facts, making other statements misleading.
In your case, since you have a judgment against the applicant, you can argue that you are owed money. Generally, if someone pays money under a mistaken belief, they may recover it unless it would harm the payee. This principle is known as unjust enrichment, which means one should not benefit at another's expense without making restitution.
Even if the applicant made a unilateral mistake or acted negligently, you may still be able to keep the money if returning it would be inequitable. Courts often allow recovery of payments made under a mistaken belief when a valid contract is later canceled due to fraud or mistake.
A constructive trust may be imposed to prevent unjust enrichment, even if the recipient acted in good faith. This means that if someone wrongfully disposes of another's property, the wronged party may enforce a constructive trust to recover what is owed.
Ultimately, whether you can keep the money will depend on the specific facts and circumstances of your case and how a court interprets them.
This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.