Recklessness involves conduct that is short of actual intent to cause harm, but greater than simple negligence.
Unlike negligence, which occurs when a person unknowingly takes a risk that they should have been aware of, recklessness means to knowingly take a risk.
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Recklessness is a state of mind that is determined both subjectively and objectively.
What the actor knew or is believed to have been thinking when the act occurred (subjective test)
What a reasonable person would have thought in the defendant’s position (objective test)
Plaintiff Claims Under Common Law
Common-law liability for fraud is available to third parties in any jurisdiction. The plaintiff must prove:
A false representation by the accountant.
Knowledge or belief by the accountant that the representation was false.
The accountant had fraudulent intent or scienter (established by proof that accountant acted with knowledge of the false representation)
The third party relied on the false representation.
The third party suffered damages.