Seventh Circuit Permits Parol Evidence to Prove Fraud in the Inducement Despite Lack of Fraud in Integration Clause

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In this week's post, we take a look at the recent Seventh Circuit case Judson Atkinson Candies, Inc. v. Kenray Associates, Inc. that held that parol evidence could be used to prove fraud in the inducement of a contract – a settlement agreement and covenant not to execute – even though the contract contained an integration clause. The decision reversed a trial court decision holding that parol evidence could only be used to show that the integration clause itself was the product of fraud.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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