Opinion ID: 900293
Heading Depth: 1
Heading Rank: 6

Heading: Undiscovered Fraud Tolling Accrual

Text: ¶ Fraud is defined as a representation... made as a statement of fact, which was untrue and known to be untrue by the party making it, or else recklessly made; [and] made with intent to deceive and for the purpose of inducing the other party to act upon it. Klinker v. Beach, 1996 SD 56 ¶ 13, 547 N.W.2d 572, 575. For fraud to be actionable, a party must further rely on it and [be] induced thereby to act to his injury or damage. Sander v. Wright, 394 N.W.2d 896, 900-01 (S.D.1986)(Fosheim, J., concurring in result)(quoting Northwest Realty Co. v. Colling, 82 S.D. 421, 433, 147 N.W.2d 675, 683 (1966)). Actions based on fraud shall not be deemed to have accrued until the aggrieved party discovers, or has actual or constructive notice of, the facts constituting the fraud. SDCL 15-2-3. ¶ A claim accrues under the fraud discovery rule even when one may not yet know all the underlying facts or the full extent of damages. Witherspoon v. Sides Const. Co., Inc., 219 Neb. 117, 362 N.W.2d 35, 41 (1985); see also Steuben v. City of Lincoln, 249 Neb. 270, 543 N.W.2d 161, 163 (1996)(citing Association of Commonwealth Claimants v. Moylan, 246 Neb. 88, 517 N.W.2d 94, 102 (1994)). Statutes of limitations begin to run when plaintiffs first become aware of facts prompting a reasonably prudent person to seek information about the problem and its cause. Woodroffe v. Hasenclever, 540 N.W.2d 45, 48 (Iowa 1995); Pembee Mfg. Corp. v. Cape Fear Const. Co., Inc., 313 N.C. 488, 329 S.E.2d 350, 354 (1985)(that further damage which plaintiff did not expect was discovered does not bring about a new cause of action); Dancor Intern., Ltd. v. Friedman, Goldberg & Mintz, 288 Ill.App.3d 666, 224 Ill.Dec. 302, 681 N.E.2d 617, 625 (1997); Murray v. Fleischaker, 949 S.W.2d 203, 206 (Mo.Ct.App.1997)(when damages become capable of ascertainment statute of limitations is put in motion).