Legal Definitions - fraudulent concealment

Under contract law, fraudulent concealment occurs when a defendant intentionally hides or withholds important information from a plaintiff in order to mislead them and cause them harm. To prove fraudulent concealment, the plaintiff must show:

• The defendant concealed or suppressed a material fact
• The defendant had knowledge of this material fact
• The material fact was not within reasonably diligent attention, observation, and judgment of the plaintiff
• The defendant suppressed or concealed this fact with the intention that the plaintiff be misled as to the true condition of the property
• The plaintiff was reasonably misled
• The plaintiff suffered damages as a result

For example, imagine a car salesman sells a used car to a customer without disclosing that the car was previously in a major accident. The customer later discovers the damage and sues the salesman for fraudulent concealment. The customer must prove that the salesman knew about the accident, intentionally hid this information, and that the customer suffered damages as a result of this deception.

Another example could be a landlord who rents out an apartment without disclosing that it has a history of mold problems. If the tenant later develops health issues due to the mold and sues the landlord for fraudulent concealment, the tenant must prove that the landlord knew about the mold, intentionally hid this information, and that the tenant suffered damages as a result of this deception.