Constructive fraud is defined as a breach of a legal or equitable duty which, without regard to moral guilt or intent of the person charged, the law declares fraudulent because the breach tends to deceive others, violates public or private confidences, or injures public interests.
For example, constructive fraud can mean that a negligent omission of a regulatory requirement or noncompliance with a regulation causes prejudice to persons whom the regulation was intended to protect.
- Lasley v. Helms, 179 Ariz. 589, 591, 880 P.2d 1135, 1137 (App. 1994).
- See Tyler v. Children's Home Soc'y of Cal., 29 Cal. App. 4th 511, 527, 35 Cal. Rptr. 2d 291, 299 (Cal. App. 1994), cert. denied, 515 U.S. 1160 (1995).