1987),(7) argued that "because the parties were involved in a contractual relationship that preexisted the alleged fraud in the inducement, the economic loss rule should have barred an award of tort damages.
2d 541 (1995), which explained that "[t]he distinction between fraud in the inducement and other kinds of fraud is the same as the distinction .
14) The court rejected the argument that HTP stood for the proposition that "one can always avoid operation of the economic loss doctrine by merely pleading fraud in the inducement.
Hotels of Key Largo has spawned many similar cases(18) when courts, in determining whether a fraud in the inducement claim survives the ELR, "consider the relationship between the inducing representation and the essential requirements, express or implied, of the contract agreed to by the parties.
The specific duty encompassed by fraud in the inducement is the duty of the parties entering into the contract to speak honestly regarding negotiated terms.
REVIEW 505, 517-23 (1999), and Geri Lynn Mankoff, Florida's Economic Loss Rule: Will it Devour Fraud in the Inducement Claims When Only Economic Damages Are at Stake?
Since the HTP decision, the various Florida courts of appeal as well as the federal district courts have attempted to formulate a "bright line" test for assessing viable fraud in the inducement claims.
5th DCA 1996), heard en banc, resulted in a five-four decision, with a special concurrence by one judge and a lengthy dissent by another directly discussing the ELR's application to fraud in the inducement.
10) Bemoaning the plethora of fraud claims in recent years, and commenting that almost any contract claim can be framed as a fraud in the inducement claim, Judge Harris advocated an analysis based upon the substance rather than the form of the claim to determine whether it was in fact an "integral part of the contract, either express or implied.
In her dissent, Judge Griffin agreed "that fraud is a much overused and misused cause of action,"(12) but rejected Judge Harris observation that "almost any contract claim can also be framed as a fraud in the inducement action.
The statement that virtually any breach of contract action can be pleaded as fraud in the inducement proves the point.
DERMA SCIENCES, in its answer to ABS' complaint filed today, denies the claims of ABS and asserts counterclaims of fraudulent misrepresentation, breach of contract and fraud in the inducement