Penn Mutual Life Insurance v. Taggart

1. Fraud is either actual or constructive. Either constitutes legal fraud. Actual' fraud “consists of any kind of artifice by which another is deceived.” It involves moral guilt, since there must be an intentional purpose to deceive. Constructive fraud “consists in any act of omission or commission, contrary to legal or equitable duty,, trust, or confidence justly reposed, which is contrary to good conscience.” It does not involve moral guilt, since it is the act' itself, as taken in connection with the relationship of the parties, and not the guilty purpose or intent, which constitutes…