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Posts Categorized: Fraud/Misrepresentation

Posted: June 7, 2017

Fraud Claim Dismissed as Time-Barred; Plaintiffs Were on Inquiry Notice

On June 1, 2017, the First Department issued a decision in MBI International Holdings Inc. v. Barclays Bank PLC, 2017 NY Slip Op. 04381, affirming the dismissal of a fraud claim as time-barred because the plaintiffs were on inquiry notice of their claim more than two years before they brought suit, explaining: An action in… Read more »

Posted: June 6, 2017

Promise Made With Preconceived Intention of Not Performing Supports Fraudulent Inducement Claim

On May 30, 2017, the First Department issued a decision in White v. Davidson, 2017 NY Slip Op. 04219, holding that allegations of a promise made with the present and undisclosed intention of non-performance is sufficient to state a claim for fraudulent inducement, explaining: With respect to the other four alleged promises or claims, the… Read more »

Posted: May 22, 2017

Insurance Law § 3105 Does Not Dispense with Requirement of Proving Reliance and Loss Causation

On May 16, 2017, the First Department issued a decision in Ambac Assurance Corp. v. Countrywide Home Loans, Inc., 2017 NY Slip Op. 03919, holding that Insurance Law Section 3105 does not dispense with the requirement to plead and prove reliance and loss causation, explaining: We agree with Countrywide that Ambac is required to prove… Read more »

Posted: May 21, 2017

Unfair Competition Damages Not Recoverable Under Computer Fraud and Abuse Act

On May 10, 2017, Justice Kornreich of the New York County Commercial Division issued a decision in Spec Simple, Inc. v. Designer Pages Online LLC, 2017 NY Slip Op. 27159, holding that unfair competition damages are not recoverable under the federal Computer Fraud and Abuse Act (“CFAA”). In Spec Simple, the plaintiff alleged that a… Read more »

Posted: May 18, 2017

Court Will Ignore Corporate Form When it is Used to Perpetrate a Fraud

On April 7, 2017, Justice Dufficy of the Queens County Commercial Division issued a decision in Nandlal v. Al-Pros Construction, Inc., 2017 NY Slip Op. 50620(U), disregarding the corporate form because it was used to perpetrate a fraud, explaining: Having been barred from performing home-improvement work in the State of New York, the individual defendant,… Read more »

Posted: May 10, 2017

Client Q&A: My Company Acquired Another Company And Now I’ve Found Out That The Seller Lied To Us About Its Business And Finances. What Can We Do?

My Company Acquired Another Company And Now I’ve Found Out That The Seller Lied To Us About Its Business And Finances. What Can We Do? By Niall D. O’Murchadha When one business buys another business or its assets, the buyer sometimes (often) finds out later that the seller told it things that were not true…. Read more »

Posted: May 5, 2017

Court of Appeals Affirms Dismissal of Fraudulent Inducement Claim for Failure to Plead “Actual Pecuniary Loss”

On May 2, 2017, the Court of Appeals issued a decision in Connaughton v. Chipotle Mexican Grill, Inc., 2017 NY Slip Op. 03445, affirming the dismissal of a fraudulent inducement claim based on the plaintiff’s failure to plead an “actual pecuniary loss” resulting from the alleged misrepresentations. Connaughton arose from an agreement the plaintiff entered… Read more »