In this case Philips relied on the valuation that Stamp Champ made and the fact that the stamp was not damaged, in order to buy it. Because of the intentional or unintentional failure to disclose this material fact about the stamp Phillips lost $7800 that he paid for the stamp. If Phillips can prove that Stamp Champ knew about the water damage done to the stamp and decided not to disclose this to him at the time of the sale it constitutes Fraudulent Nondisclosure. In the case that he can’t prove that Stamp Champ knew about this fact, he can try to win the lawsuit for Negligence. A victim of Fraud is entitled to recover the amount of money that he or she lost, any legal fees that had to be pay during the course of the lawsuit, and in some cases
