Standard of Proof for Fraud Cases
It's not clear what standard of proof should be applied to cases alleging fraud. The Western Section Court of Appeals' recent opinion in Capital Mgmt. Partners v. Eggleston is the closest we have to a definitive answer right now:
The clear and convincing standard of proof is appropriate to those cases where a party seeks the reform or rescission of a written instrument due to fraudulent inducement. But in all other cases involving claims of fraud, the standard of proof is preponderance of evidence.
Still, the Court of Appeals in Eggleston acknowledged that the law in Tennessee is anything but clear. For now, the best course of action for trial judges may be to follow the trial court's lead in Eggleston: state on the record what the court's ruling would be under both standards.
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