Summary
This Supreme Court of Virginia opinion addresses whether an employer committed actual or constructive fraud by allegedly concealing a manager's gender bias and misrepresenting another employee's qualifications during an employment negotiation. The trial court granted the employer's motions to strike the evidence and set aside the jury's $125,000 verdict for the plaintiff. The appellate court affirmed, holding that the plaintiff failed to prove intent to conceal or material fact misrepresentation for actual fraud, and could not establish proximate cause between the alleged misrepresentation and her injury for constructive fraud.
Topics
Practice areas
Questions Presented
- Whether the trial court erred in granting KCI's motion to strike the evidence and set aside the jury verdict on the actual fraud claim.
- Whether the trial court erred in granting KCI's motion to set aside the verdict on the constructive fraud claim due to lack of proximate cause.
Holdings
- The trial court's grant of the motion to strike the evidence and set aside the verdict is affirmed because the plaintiff failed to show an intent to conceal and the alleged statements were opinions, not material facts.
- The trial court's grant of the motion to set aside the verdict on constructive fraud is affirmed because the plaintiff failed to establish a causal connection between the alleged misrepresentation and her injury.
Key quotations
“A contracting party's willful nondisclosure of a material fact that he knows is unknown to the other party may evince an intent to practice actual fraud.” (at 582)
“The trial court correctly found that Bonhomme's statements were opinions and, therefore, could not provide the basis for sustaining a claim of actual fraud.” (at 581)
Factual background
Cohn was offered a managerial position with Knowledge Connections, Inc. (KCI). The offer was later withdrawn after KCI reassigned the Pentagon office position to another employee, citing alleged gender bias by a Department of Defense official. Cohn alleged KCI made false statements about another employee's qualifications and concealed the official's bias, claiming actual and constructive fraud.
Procedural history
Cohn sued KCI for actual and constructive fraud after KCI withdrew a job offer. The trial court granted KCI's motion to strike Cohn's evidence and set aside the jury verdict. Cohn appealed.