Common Law Fraud and the Odometer Act Lawyer Manual

Common law fraud

In order to establish a claim for common law fraud in Illinois, a plaintiff must allege and prove each of the following:

• a false statement of material fact;
• the party making the statement knew or believed it to be untrue;
• the party making the statement's intent that the statement induce the other party to act;
• the party to whom the statement was made did rely on the statement; and
• the reliance by the person to whom the statement was made led to that person's injury. Miller v. Chevrolet/GEO, Inc., 326 Ill. App. 3d 642, 648 (2001).

Limitations period

The statute of limitations for common law fraud actions is five years.  Waterford Condominium Ass'n v. Dunbar Corp., 104 Ill. App. 3d 371, 376 (1st Dist. 1982).

Standard of proof

Common law fraud requires the plaintiff to prove the elements of fraud by a "clear and convincing" proof standard.  See Tague v. Molitor Motor Co. 139 Ill. App. 3d 313, 316 (5th Dist. 1985).

Punitive damages

Punitive damages may be awarded in common law fraud cases. Fed'l Deposit Insurance Corp. v. W.R. Grace & Co., 877 F. 2d 614 (7h Cir. 1989).

Right to jury trial

Plaintiff may demand a jury trial in common law fraud actions. See, Oltmer v. Zamora,  94 Ill. App. 3d 651 (4th Dist. 1981).

Odometer Act

Under the Federal Odometer Act, 49 U.S.C. § 327, it is unlawful for anyone to tamper with an odometer on a motor vehicle, or to sell a motor vehicle where its odometer has been altered to affect its true mileage. 49 U.S.C. § 32703. Regulations implementing the Odometer Act are found at 49 C.F.R § 580.5.

Any person selling an automobile is required to disclose the mileage of a vehicle or state that it is unknown. 49 U.S.C. § 32705.

Persons that violate any provision of the Odometer Act with intent to defraud are liable for three times the actual damages or $10,000, whichever is greater. The statute of limitations is two years. 49 U.S.C. § 32710. Successful plaintiffs may recover attorney fees. 49 U.S.C. § 32710.