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Pleading Fraud with Particularity CR 9(b)

Perhaps the closest the federal rules gets to the old code pleading standards is the 9(b) requirement that fraud be plead with particularity. This is a balancing act between "notice pleading" which requires a "short and plain statement" (CR 8(e)) and the code pleading requirement of "ultimate facts." Haberman v WPPSS, 109 Wn.2d 107, 166, 744 P.2d 1032 (1987) described Washington law on CR 9(b):

CR 9(b) requires dismissal when a complaint fails to plead fraud with particularity. CR 9(b), like its federal counterpart, Fed. R. Civ. P. 9(b), ensures that plaintiffs seek redress for a wrong rather than use lawsuits as pretexts to discover unknown wrongs, protects defendants from unnecessary harm to their reputation, and gives defendants sufficient notice to enable them to prepare a defense. See D & G Enters. v. Continental Ill. Nat’l Bank & Trust Co., 574 F. Supp. 263, 266-67 (N.D. Ill. 1983); Semegen v. Weidner, 780 F.2d 727, 731 (9th Cir. 1985). The complaining party must plead both the elements and circumstances of fraudulent conduct. 3A L. Orland, Wash. Prac. 129 (3d ed. 1980). Applying CR 9(b) in light of CR 8(a), which requires a “short and plain statement of the claim showing that the pleader is entitled to relief”, a complaint must allege specific fraudulent acts, but need not plead evidentiary matters. See D & G Enterprises, at 267; Trak Microcomputer Corp. v. Wearne Bros., 628 F. Supp. 1089, 1092 (N.D. Ill. 1985); Somerville v. Major Exploration, Inc., 576 F. Supp. 902, 909 (S.D.N.Y. 1983).

To determine whether allegations of fraud satisfy CR 9(b), the court will consider only the complaint, and not additional allegations made in the briefs. See Beck v. Cantor, Fitzgerald & Co., 621 F. Supp. 1547, 1552 (N.D. Ill. 1985). A complaint adequately alleges fraud if it informs the defendant of who did what, and describes the fraudulent conduct and mechanisms. Beck, at 1552 n.3; Lewis v. Berry, 101 F.R.D. 706, 708-09 (W.D. Wash. 1984). If a complaint provides this information, then group conduct may be pleaded generally because the defendants have sufficient information to answer the allegations. In re Equity Funding Corp. of Am. Sec. Litig., 416 F. Supp. 161, 181 (C.D. Cal. 1976). “[W]hen a plaintiff sues individual group members on the basis of the collective product of the group, specific allegations about the role of each defendant are unnecessary.” In re Consumers Power Co. Sec. Litig., 105 F.R.D. 583, 593 (E.D. Mich. 1985).

 

  

 

 

 

 

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