Chicago Business Litigation Attorney Blog

Illinois courts have held that fraud consists of anything calculated to deceive, including positive acts, omissions, concealment, breach of legal or equitable duty, and breach of a trust or confidence. Rybak v. Provenzale, 181 Ill.App.3d 884, 899 (2d Dist. 1989). The basic concept of fraud is founded on conduct calculated to deceive. Illinois Jurisprudence, Personal Injury and Torts § 13:01. Fraud has been said to comprise anything calculated to deceive and may consist of a single act, a single suppression of truth, suggestion of falsity, or direct falsehood, innuendo, look, or gesture. Id. A fraudulent misrepresentation may consist of actions, words, or other conduct that constitutes a statement of fact. Id. A representation is fraudulent when, to the knowledge or belief of its utterer, it is false in the sense in which it is intended to be understood by the recipient. Miller v. Lockport Realty Group, Inc., 377 Ill.App.3d 369, 377 (1 Dist. 2007).

Informational Purposes Only: The content of this writing was prepared by Tamari & Blumenthal, LLC for informational purposes only. The content of this writing is not intended to constitute and does not constitute legal advice. Reading the content of this writing or communicating with our office staff or attorneys by telephone, fax or e-mail does not make you a client of Tamari & Blumenthal, LLC. To become a client, you must sign and return our governing engagement agreement. Persons reading the content of this writing should not act upon this information without contacting and speaking with an attorney. Do not issue or provide us with confidential information until an attorney-client relationship has been formally established with our firm.

Litigators, Walid J. Tamari and Grant Blumenthal, are co-chairs of the firm's commercial litigation practice group.

Generally, Illinois courts require a false representation relating to a matter of fact, rather than opinions, to establish a cause of action for fraud. Illinois Jurisprudence, Personal Injury and Torts § 13:06. Opinions are usually matters of judgment, estimates, and guesses, and a person relies on such at his or her own risk. Id. As a general rule, Illinois law will not support a claim for fraud predicated on an opinion. Schrager v. North Community Bank, 328 Ill.App.3d 696, 704 (1st Dist. 2002).

However, an exception exists where the circumstances suggest that a plaintiff may have justifiably relied on the opinion as though it was a statement of fact. Schrager, 328 Ill.App.3d at 704. A statement that appears to be an opinion when standing alone, may in fact be a statement of fact for purposes of fraud when evaluated in context and in light of all the facts and circumstances of a case. Illinois Jurisprudence, Personal Injury and Torts § 13:06. Illinois courts consider the following factors to help determine whether a statement is one of fact or opinion: the sophistication of the parties; the accessibility of outside information; and whether the speaker has held himself or herself out to have special knowledge. Id.

Wherever a party states a matter which might otherwise be only an opinion, but does not state it as the expression of his own opinion, but as an affirmative fact material to the transaction, the statement clearly becomes an affirmation of the fact within the meaning of the rule against fraud. Schrager, 328 Ill.App.3d at 704. Therefore, the First District Illinois Appellate Court held that the general rule of analyzing whether a statement is one of fact or opinion is that it is the sense in which the statement is reasonably understood, not the form of the statement which is important or controlling. Id. Whether a statement is one of fact or of opinion depends on all the facts and circumstances of a particular case. Illinois Jurisprudence, Personal Injury and Torts § 13:06.

Informational Purposes Only: The content of this writing was prepared by Tamari & Blumenthal, LLC for informational purposes only. The content of this writing is not intended to constitute and does not constitute legal advice. Reading the content of this writing or communicating with our office staff or attorneys by telephone, fax or e-mail does not make you a client of Tamari & Blumenthal, LLC. To become a client, you must sign and return our governing engagement agreement. Persons reading the content of this writing should not act upon this information without contacting and speaking with an attorney. Do not issue or provide us with confidential information until an attorney-client relationship has been formally established with our firm.