判决理由
Fraud (deceit) is proved when it is shown that a false representation was made knowingly, without belief in its truth, or recklessly (careless whether it be true or false). An honest belief in the truth of a statement, however unreasonable, negates fraud. Negligence, however gross, is not fraud.
事实
The directors of a tramway company issued a prospectus stating that the company had the right to use steam power instead of horses. In fact, the right to use steam power was subject to the consent of the Board of Trade, which was ultimately refused. Sir Henry Peek bought shares on the faith of the prospectus and lost money when the company was wound up.
判决摘要
The House of Lords held that the directors were not liable for fraud. They honestly believed that the Board of Trade's consent was a formality and would be granted. Since their belief was honest (albeit unreasonable), they had not made the statement fraudulently. Lord Herschell set out the classic definition of fraud that has been followed ever since.
关键引述
"Fraud is proved when it is shewn that a false representation has been made (1) knowingly, or (2) without belief in its truth, or (3) recklessly, careless whether it be true or false."
— Lord Herschell
"Making a false statement through want of care falls far short of, and is a very different thing from, fraud."
— Lord Herschell
后续处理
Remains the leading authority on the tort of deceit and the definition of fraud. Led directly to the Directors Liability Act 1890 and ultimately the Misrepresentation Act 1967 for negligent misrepresentation.