The elements of fraud under Pennsylvania law are: (1) a misrepresentation; (2) fraudulent utterance thereof; (3) an intention by the maker that the recipient will thereby be induced to act; (4) justifiable reliance by the recipient upon the misrepresentation; and (5) damage to the recipient as a result. Briggs v. Erie Ins. Group, 406 Pa. Super. 560, 566, 594 A.2d 761, 764 (1991); B.O. v. C.O., 404 Pa. Super. 127, 131, 590 A.2d 313, 315 (1991); Delahanty v. First Pennsylvania Bank, N.A., 318 Pa. Super. 90, 108, 464 A.2d 1243 (1983); Mellon Bank v. First Union Real Estate, 951 F.2d 1399, 1409 (3d Cir. 1991). At trial, the trustee argued that Berringer never assigned his right to security compensation to the Credit Union. The trustee contended that Allegar's letter of September 10, 1982 and Parson's letter of October 19, 1982 contained actionable misrepresentations of existing facts.
23 Pa.C.S.A. § 5103(g)(2). ¶ 16 In B.O. v. CO., 404 Pa.Super. 127, 590 A.2d 313 (1991), this Court stated that "when an allegation of fraud is injected in [an acknowledgment of paternity] case, the whole tone and tenor of the matter changes. It opens the door to overturning settled issues and policies of the law." B.O., 590 A.2d at 315.
In stating a claim for fraudulent misrepresentation, as compared to negligent misrepresentation, plaintiffs must demonstrate that the misrepresentation was made knowingly or recklessly by defendants. See, e.g. Brindle v. West Allegheny Hospital, 406 Pa. Super. 572, 594 A.2d 766, 768 (1991) (interpreting "fraudulent utterance" element as referring to defendant's scienter) (citing B.O. v. C.O., 404 Pa. Super. 127, 590 A.2d 313 (1991)).
With regard to a fraud allegation in a paternity case, our Court noted the following: In B.O. v. C.O., 404 Pa. Super. 127, 590 A.2d 313 (1991), this Court stated that "when an allegation of fraud is injected in [an acknowledgement of paternity] case, the whole tone and tenor of the matter changes. It opens the door to overturning settled issues and policies of the law.
¶ 10 However, the doctrine of paternity by estoppel will not be applied where fraud has been established. See Gebler, 895 A.2d at 4; B.O.v. CO., 404 Pa.Super. 127, 590 A2d 313, 315 (1991). Even where the father-child relationship has been established, as is the case here, evidence of fraud may preclude application of the doctrine of paternity by estoppel.
(N.T., 1/11/05 at p. 12, 21). See B.O. v. C.O., 404 Pa.Super. 127, 590 A.2d 313, 315 (1991) ("When an allegation of fraud is injected in a case, the whole tone and tenor of the matter changes. It opens the door to overturning settled issues and policies of the law.").
Id. at 575-576. See also, B.O. v. C.O., 590 A.2d 313, 315 (Pa.Super. 1991) ("When an allegation of fraud is injected in a case, the whole tone and tenor of the matter changes. It opens the door to overturning settled issues and policies of the law."). The test for fraud is: (1) a misrepresentation, (2) a fraudulent utterance, (3) an intention by the maker that the recipient will thereby by induced to act, (4) justifiable reliance by the recipient upon the misrepresentation, and (5) damage to the recipient as a proximate result.
We have held that where the failure to challenge paternity was precipitated by fraud, a putative father will be permitted to question his status under certain circumstances. B.O. v.C.O., 404 Pa. Super. 127, 590 A.2d 313 (1991). In B.O. v. C.O., the fraud was the representation by mother that C.O. was the father of a child born to this unmarried couple.
At trial, appellant had the burden of proving appellee committed fraud or intent to defraud by clear, precise and convincing evidence. B.O. v. C.O., 404 Pa. Super. 127, 131, 590 A.2d 313, 315 (1991). The elements of fraud are: (1) a misrepresentation, (2) a fraudulent utterance thereof, (3) an intention by the maker that the recipient will thereby be induced to act, (4) justifiable reliance by the recipient upon the misrepresentation, and (5) damage to the recipient as the proximate result.
We have recently clarified the second element of the test to refer to the intent or scienter required for an utterance to be considered fraudulent, which intent has been characterized as knowing or reckless. B.O. v. C.O., 404 Pa. Super. 127, 132, fn. 1, 590 A.2d 313, 315 fn. 1 (1991). The allegations contained in Appellants' complaint satisfy each of these elements.