Understanding Fraudulent Concealment: Key Legal Insights

Definition & Meaning

Fraudulent concealment refers to the intentional act of hiding or suppressing important information that a person is legally required to disclose, with the aim of deceiving or defrauding others. For example, if a doctor fails to inform a patient about a previous malpractice incident involving another doctor, they may be committing fraudulent concealment. This legal concept is often applied in civil cases and can be used to extend the time limit for filing a lawsuit, known as tolling the statute of limitations.

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Real-world examples

Here are a couple of examples of abatement:

One example of fraudulent concealment is when a seller of a property fails to disclose known structural issues to a buyer, leading the buyer to make an uninformed purchase. (hypothetical example)

Another example is a financial advisor who knowingly withholds information about the risks of an investment from a client, resulting in financial loss for the client. (hypothetical example)

State-by-state differences

Examples of state differences (not exhaustive):

State Key Differences
California Fraudulent concealment can extend the statute of limitations up to three years.
New York Fraudulent concealment claims must be filed within six years of discovering the fraud.
Texas Requires proof of intent to deceive as part of the claim.

This is not a complete list. State laws vary and users should consult local rules for specific guidance.

Comparison with related terms

Term Definition Key Differences
Fraud Deceptive practices intended to secure unfair or unlawful gain. Fraudulent concealment specifically involves hiding information rather than outright deception.
Misrepresentation False statements made to induce someone to enter into a contract. Misrepresentation can be unintentional, while fraudulent concealment is always intentional.

What to do if this term applies to you

If you believe you are a victim of fraudulent concealment, consider the following steps:

  • Document all relevant information and communications related to the concealment.
  • Consult with a legal professional to assess your situation and determine the best course of action.
  • Explore US Legal Forms for templates that can help you file a claim or respond to fraudulent concealment allegations.

Quick facts

Attribute Details
Typical Fees Varies by attorney and case complexity.
Jurisdiction State and federal courts.
Possible Penalties Damages, including compensatory and punitive damages.

Key takeaways

Frequently asked questions

The statute of limitations can vary by state, but it often allows for an extension based on when the fraud was discovered.