Method for detecting a fault condition in a vehicular hydraulic circuit during a drive cycle using an electric pump includes monitoring an actual pump torque and monitoring a desired pump torque. A current confidence factor is determined based on the actual pump torque and the desired pump torque. An average confidence factor is iteratively calculated based on the current confidence factor and previously determined confidence factors. The average confidence factor is compared to a fault condition threshold. An absence of the fault condition in the hydraulic circuit is detected when the average confidence factor is at least the fault condition threshold, and a presence of the fault condition in the hydraulic circuit is detected when the average confidence factor is less than the fault condition threshold.