Blogs

Posts Categorized: Fraud/Misrepresentation

Posted: October 29, 2017

Fraud Plaintiff Was Unreasonable in Relying on Representation Contradicted by Term Sheet

On October 13, 2017, Justice Masley of the New York County Commercial Division issued a decision in City’s 5th Ave. 54th St. LLC v. 685 Fifth Ave. Owner LLC, 2017 NY Slip Op. 32197(U), dismissing a fraud claim because the plaintiff’s reliance on an oral representation that was contradicted by the parties’ term sheet was… Read more »

Posted: September 29, 2017

Fraudulent Inducement Claims Dismissed on Summary Judgment: No Reasonable Reliance

On September 15, 2017, Justice Sherwood of the New York County Commercial Division issued a decision in SFR Holdings Ltd. v. Rice, 2017 NY Slip Op. 31974(U), dismissing a fraudulent inducement claim on summary judgment for lack of reasonable reliance, explaining: To prove fraudulent inducement to contract, a plaintiff must demonstrate the misrepresentation of a… Read more »

Posted: September 21, 2017

Fraud Claim Based on Promise to Perform Under the Parties’ Contract Dismissed

In September 19, 2017, a divided First Department issued a decision in Cronos Group Ltd. v. XComIP, LLC, 2017 NY Slip Op. 06515, reversing a decision by Justice Ostrager of the New York County Commercial Division and dismissing a fraud claim founded upon an allegation that the defendant made promises with an undisclosed present intention… Read more »

Posted: September 3, 2017

Fraud Claim Cannot be Based on Statement Contradicted by Unambiguous Term of Contract

On August 25, 2017, Justice Kornreich of the New York County Commercial Division issued a decision in MPEG LA, L.L.C. v. Samsung Electronics Co., Ltd., 2017 NY Slip Op. 31799(U), dismissing a fraud claim based on a misrepresentation that contradicted an unambiguous term of the parties’ contract, explaining: Samsung’s fraudulent inducement claim is based on… Read more »

Posted: August 13, 2017

Two-Year Discovery Rule Does Not Save Fraud Claim from Being Time-Barred

On August 7, 2017, Justice Kornreich of the New York County Commercial Division issued a decision in Epiphany Community Nursery School v. Levey, 2017 NY Slip Op. 31668(U), holding that the two-year discovery rule did not save a fraud claim from being time-barred, explaining: [A]ll of the claims in the complaint are dismissed as time-barred…. Read more »

Posted: August 8, 2017

Merger Clause Bars Fraud Claim

On July 31, 2017, Justice Sherwood of the New York County Commercial Division issued a decision in Representaciones E Investigaciones Medicas, S.A. De C.V. v. Abdala, 2017 NY Slip Op. 31619(U), dismissing a fraud claim relating to the acquisition of a pharmaceutical company based on a contract’s merger clause. In Representaciones E Investigaciones Medicas, the… Read more »

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 »