Trenholm v. Ratcliff
Supreme Court of Texas
646 S.W.2d 927 (1983)
Developer Ratcliff (defendant) told the Trenholms (plaintiffs) and others that a nearby mobile-home park had already been sold for a future shopping center, that tenants had been told to move, and that the land would soon be bulldozed, inducing them to buy 18 subdivision lots; these statements were false, the subdivision failed financially, and after selling lots at a loss, Trenholm sued for fraud, with a jury finding Ratcliff's statements false, reckless, malicious, and relied upon, awarding substantial compensatory and exemplary damages, though the trial court and court of appeals ruled for Ratcliff.
Whether an opinion can constitute fraud if the speaker, purporting to have special knowledge of facts that will occur in the future, makes a false statement of fact with knowledge of its falsity.