Fraudulent Inducement Requires Clear and Convincing Evidence

The Pa. Supreme Court has held that the voiding of a trust by a settlor alleging fraud in the inducement requires clear and convincing evidence of common law fraud, the elements of which are a knowing or reckless material misrepresentation, an intention to mislead another into reliance, and resulting injury caused by justifiable reliance. Evidence of the failure of the settlor’s husband to disclose the identity of real property held by entities transferred to the trust was insufficient because it was not a material misrepresentation. In re: Passarelli Family Trust, ___ A.3d ___, 71 MAP 2019 (Pa. 12/22/2020), aff’ng 206 A.3d 1188, 2019 PA Super 95 (2019) (en banc), rev’g 7 Fid.Rep.3d 63 (O.C. Chester Co. 2016).

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