Hastings Law Journal


Kristin Adrian


California Civil Code section 3343 provides that the measure of damages for fraud in a property transaction is out-of-pocket loss. There has been disagreement among the courts both as to whether there are exceptions to this rule and whether application of the Code results in an adequate recovery. This Note illustrates that a proper application of the Code results in recovery of all the detriment proximately caused by the fraud thereby eliminating any need for exceptions.

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