F. Browne Gregg, Sr., and Juanita O. Gregg - Page 12




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               Pursuant to Florida jurisprudence, a claim for common-law               
          fraud requires the following elements:  (1) A false statement                
          concerning a material fact; (2) the representor's knowledge that             
          the representation is false; (3) an intention that the                       
          representation induce another to act on it; and (4) consequent               
          injury to the party acting in reliance on the representation.                
          Azalea Meats, Inc. v. Muscat, 246 F.Supp. 780 (S.D. Fla. 1965),              
          revd. on other grounds 386 F.2d 5 (5th Cir. 1967); Food Fair,                
          Inc. v. Anderson, 382 So. 2d 150 (Fla. Dist. Ct. App. 1980).                 
               Petitioners suggest that the nature of the injury necessary             
          to sustain a claim for fraud under Florida law is inherently                 
          personal, noting the availability of remedies for emotional                  
          distress and similar personal injuries resulting from the fraud              
          perpetrated.  Petitioners concede on brief, however, that there              
          is nothing in the record to demonstrate that compensatory damages            
          were paid to petitioner on account of emotional stress or “other             
          damages that are classic personal injury damages”.  Because our              
          focus is on the injuries that actually affected petitioner’s                 
          receipt of compensatory damages rather than on other possible                
          injuries, see Commissioner v. Schleier, 515 U.S. 323 (1995),                 
          petitioners’ argument is unavailing.                                         
               Florida law does not appear to rigidly categorize the nature            
          of the injury necessary to sustain a claim for fraud.4  We note,             

               4 As stated in Food Fair, Inc. v. Anderson, 382 So. 2d 150,             
          154 (Fla. Dist. Ct. App. 1980):                                              
               Florida decisions defining injury go in both directions                 
                                                              (continued...)           

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