What is the test for damages under section 3343 of the California Civil Code for defrauding a buyer of a residential property into selling it for less than $100,000?

California, United States of America


The following excerpt is from J&R San Francisco, Inc. v. Fondahl, A141841 (Cal. App. 2015):

Civil Code section 3343, provides: "(a) One defrauded in the purchase, sale or exchange of property is entitled to recover the difference between the actual value of that with which the defrauded person parted and the actual value of that which he received, together with any additional damage arising from the particular transaction, including . . . [] . . . [] (2) An amount which would compensate the defrauded party for loss of use and enjoyment of the property to the extent that any such loss was proximately caused by the fraud." Similarly, Civil Code section 1102.13 provides that "any person who willfully or negligently violates or fails to perform any duty prescribed by [statutes specifying the disclosures required upon transfer of residential property] shall be liable in the amount of actual damages suffered by a transferee." (Saunders v. Taylor (1996) 42 Cal.App.4th 1538, 1545 [" 'actual damages,' as used in [Civil Code] section 1102.13 means compensatory damages as measured by [Civil Code] section 3343"].)

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