Calif. High Court Continues Trend In Evidence Of Fraud

Law360, New York (November 7, 2013, 4:00 PM EST) -- The California Court of Appeal recently reiterated a strong modern policy that evidence of fraud is always admissible to challenge the validity of a written agreement. In Thrifty Payless Inc. v. The Americana at Brand LLC, 218 Cal. App. 4th 1230 (2013), the fraud exception to the parol evidence rule allowed a tenant to present extrinsic evidence, despite an integration clause in the lease, to show that the landlord made misrepresentations during lease negotiations when "estimating" the tenant's probable pro rata share of expenses at a shopping center that was under construction.

ln 2004, Plaintiff Thrifty Payless, Inc. entered into a...

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