Blogs

Posts Categorized: Fraud/Misrepresentation

Posted: March 15, 2017

RMBS Fraud Claim Dismissed for Inability to Tie Losses to Misrepresentations

On March 2, 2017, the First Department issued a decision in Basis PAC-Rim Opportunity Fund (Master) v. TCW Asset Management Co., 2017 NY Slip Op. 01644, dismissing an RMBS fraud action on summary judgment for failure to tie the plaintiff’s losses to the defendant’s misrepresentations, explaining: A fraud claim requires proof by clear and convincing… Read more »

Posted: March 8, 2017

Continuing Wrong Doctrine Does Not Save Plaintiff’s Claims Against Credit Card Issuer

On February 23, 2017, the First Department issued a decision in Henry v. Bank of America, 2017 NY Slip Op. 01436, holding that the continuing wrong doctrine did not save a plaintiff’s untimely claims, explaining: Plaintiff’s reliance on the continuing wrong doctrine to toll the limitations periods is misplaced. The continuous wrong doctrine is an… Read more »

Posted: March 3, 2017

No Fraud Claim for Lost Profits

On February 23, 2017, the First Department issued a decision in Norcast S.ar.l. v. Castle Harlan, Inc., 2017 NY Slip Op. 01479, affirming the dismissal of a fraud claim seeking lost profits damages, explaining: This action arises from the sale of a business by plaintiffs to a special purpose vehicle part-owned by defendant. Plaintiffs claim… Read more »

Posted: March 2, 2017

Fraud Claim Survives Split Decision Regarding When Plaintiff Could Have Discovered Claim

On February 23, 2017, the First Department issued a decision in Norddeutsche Landesbank Girozentrale v. Tilton, 2017 NY Slip Op. 01482, affirming the denial of a motion to dismiss a fraud claim because of questions of fact regarding when the plaintiff became aware of the fraud. In Norddeutsche Landesbank Girozentrale, the majority found that there… Read more »

Posted: February 25, 2017

Insurer Adequately Pleads Reliance on RMBS Issuer’s Representations

On December 19, 2016, Justice Friedman of the New York County Commercial Division issued a decision in Ambac Assurance Corp. v. Countrywide Home Loans, Inc., 2016 NY Slip Op. 51864(U), holding that an insurer had adequately pled reliance on an RMBS issuer’s misrepresentations, explaining: The general standards for pleading and proof of justifiable reliance have… Read more »

Posted: February 19, 2017

Dismissal of Fraudulent Misrepresentation Claim Based on Respondeat Superior Theory Affirmed

On February 14, 2017, the First Department issued a decision in VFP Investments I LLC v. Foot Locker, Inc., 2017 NY Slip Op. 01148, affirming the dismissal of a fraudulent misrepresentation claim based on the theory of respondeat superior, explaining: The fraudulent misrepresentation claim based on the theory of respondeat superior fails to state a… Read more »

Posted: February 15, 2017

Fraud Plaintiff Was Reasonable in Relying on Opinion Letter Without Doing Independent Appraisal

On February 10, 2017, the First Department issued a decision in Remediation Capital Funding LLC v. Noto, 2017 NY Slip Op. 01119, holding that a fraud plaintiff was reasonable in relying on an opinion letter without doing an independent appraisal, explaining: As relevant to this appeal, plaintiff seeks to assert misrepresentation claims against Noto. In… Read more »

Posted: February 14, 2017

First Department Affirms Dismissal of Investor Claims Against Rating Agencies as Time-Barred

On February 10, 2017, the First Department issued a decision in Varga v. McGraw Hill Financial, Inc., 2017 NY Slip Op. 01131, affirming the dismissal of RMBS investor claims against rating agencies as time-barred, explaining: Plaintiff’s claims were brought more than six years after the last purchase of securities (CPLR 213[8]) and thus are time-barred…. Read more »

Posted: January 24, 2017

Inquiry Notice of Fraud Existed When Party Received PPM That Contradicted Oral Promises

On January 19, 2017, First Department issued a decision in Hamrick v. Guralnick, 2017 NY Slip Op. 00400, holding that a party was on inquiry notice of an alleged fraud when it received a private placement memorandum containing statements that contradicted the oral representations upon which it was suing, explaining: The fraudulent inducement, negligent misrepresentation,… Read more »

Posted: January 16, 2017

Fraudulent Inducement Claim Fails for Failure to Prove Out-of-Pocket Damages

On January 12, 2017, the First Department issued a decision in Kumiva Group, LLC v. Garda USA Inc., 2017 NY Slip Op. 00235, granting summary judgment dismissing a counterclaim for fraudulent inducement for failure adequately to plead out-of-pocket damages, explaining: Initially, as to Garda’s damages, New York courts for over one hundred years have differentiated… Read more »