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At Liberty to Lie? The Viability of Fraud Claims after Disclaiming Reliance

Business Torts Litigation Committee

Spring 2013, Vol. 20 No. 3

April 23, 2013

Waiver of reliance provisions can provide some protection to parties who seek to limit their exposure to potential fraud claims. However courts throughout the United States have taken widely different approaches—resulting in widely different conclusions—regarding the enforceability of such provisions. Parties must pay careful attention to the law of the governing jurisdiction and recognize that many factors—including a preexisting fiduciary relationship, the sophistication of the waiving party, representation by counsel, and availability of material information—will be considered in determining whether or not the waiver will be effective.

Click here to read about reliance provisions in the ABA published article, written by Alison Baker and Andy Zeitlin.

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