Legal Question in Civil Litigation in Nevada
can you sue some one if they recommended a person/company and then you used that person or company based on their recommendation and you were defrauded. Keep in mind they recommended that person or company because they were affiliated and they benefited from that financially. What will you sue them for?
1 Answer from Attorneys
Yes, you can sue them. This is especially true because they benefited from the fraud and were affiliated. You might sue them for Fraud, Civil Conspiracy, Conversion, theft, among perhaps other things sounding in negligence, depending on the facts. You may, or may not win. It's a matter of proof. You'd have to prove that they recommended the party who defrauded you. You'd have to prove the affiliation. You'd have to prove 'scienter' or knowing before they made such recommendation, that this defrauding entity was in the past a fraud or would be defrauding you. It all depends on the facts. The next hurdle is getting money out the person or company that recommended the fraudulent entity. Is there money? Will it be there if and when a judgment against them comes? Is there any insurance, or a bond of some kind? What was the recommending agency's relationship with the defrauded party? Etc.
For instance: R is a real estate brokerage for seller. B is buyer. S is Seller. E is the escrow agent.
R recommends E. E is not actually licensed according to state law. S, based on the recommendation of R demands in two written counter offers on the sale of a house (H) that E must be used as the Escrow Agent. S deposits a deed into E and E causes it to be recorded with the County. Lending Bank (L) deposits money into E. B and L execute a Deed of Trust on H. E gives S a check for the funds deposited by L. When S presents the check at his bank for payment - the check bounces for insufficient funds. E can not be found after this or has no money to repay it.
If were S I would sue R for negligence as well as E. R should then make a claim on his E and O or malpractice Insurance. S can do this as long as he has 'Clean Hands' of the fraud.
If B loses his house - he should sue his own real estate broker for negligence.
Google me.
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