ACOA: Rule 9(b) Fraud “Particularity” Pleading Standard Does Not Apply to ADTPA Claim.

Pleasant v. McDaniel – 2018 Ark. App. 254, 550 S.W.3d 8 (2018).

Background

    • State brings Arkansas Deceptive Trade Practices Act (Ark. Code Ann. § 4-88-101, et seq.) case against defendants who were contacting MVA victims to soliciting business for chiropractors
    • Defendants found liable.
  • Appeal argument: ADTPA pleadings were invalid because they did not meet the Rule 9(b) “particularity” requirement.

Issue

Does the Rule 9 “particularity” pleading requirement apply to an ADTPA action?

Rule 9

“(b) Fraud or Mistake; Conditions of Mind. In alleging fraud or mistake, a party must state with particularity the circumstances constituting fraud or mistake. …”

Holding

  • Rule 9(b) “particularity” pleading requirement does not apply to an ADTPA claim.
  • Fraud (but not ADTPA) requires:
    • Knowledge of false representation
    • Intent to induce action/inaction
    • Justifiable reliance on the representation
  • Affirmed.