Blogs

Posts Categorized: Fraud/Misrepresentation

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 »

Posted: April 29, 2017

Fraudulent Inducement Claim Dismissed For Failure to Allege Due Diligence

On April 7, 2017, Justice Bransten of the New York County Commercial Division issued a decision in Drummond Decatur & State Properties, LLC v. 10500 Drummond Road Partners LP, 2017 NY Slip Op. 30727(U), dismissing a fraudulent inducement claim for failure adequately to allege due diligence, explaining: A representation of present facts is collateral to… Read more »

Posted: April 24, 2017

Defendant Need Not Make Misrepresentations to be Liable for Aiding and Abetting Fraud

On April 13, 2017, Justice Bransten of the New York County Commercial Division issued a decision in Universal Processing Services of Wisconsin v. Berger, 2017 NY Slip Op. 30747(U), upholding a claim for aiding abetting fraud even though there was no allegation that the defendants made any misrepresentations to the plaintiff, explaining: To state a… Read more »

Posted: April 9, 2017

Fraud Claim Based on Same Facts as Legal Malpractice Claim Dismissed

On March 28, 2017, Justice Scarpulla of the New York County Commercial Division issued a decision in Brean, Murray, Carrett & Co. v. Morrison & Foerster LLP, 2017 NY Slip Op. 30602(U), dismissing a fraud claim based on the same facts as a legal malpractice claim, explaining: Brean’s fraud claim must also be dismissed. Brean’s… Read more »