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Current Developments in the Commercial Divisions of the
New York State Courts
Posted: November 20, 2017

Fraud Claim Time-Barred; Plaintiffs Failed Timely to Take Action After They Had Inquiry Notice of Claim

On November 14, 2017, the First Department issued a decision in Moses v. Dunlop, 2017 NY Slip Op. 07962, holding that a fraud claim was time-barred because of the plaintiffs’ failure timely to bring suit after they had inquiry notice of their claim, explaining:

The fraud claims, to the extent they arise from conduct that occurred in 2006, are time-barred. Plaintiffs failed to establish that the fraud could not have been discovered earlier. At the very latest, they were on inquiry notice by January 2007, when Dunlop presented Moses and Kaufman with the settlement and release agreement — more than two years before the commencement of this action. Unlike the situation in CSAM Capital, plaintiffs allowed years to go by without confronting Dunlop or Bravo about any concerns they may have had in the face of Dunlop’s highly publicized continued involvement in the Series, his participation in and receipt of credits for spin-offs in other locations.

(Internal quotations and citations omitted).

We have significant experience in both defending and bringing fraud claims in cases as small as disputes between individual business persons to complex claims worth hundreds of millions of dollars between large multinational corporations. Contact us if you believe you have been defrauded or if someone has accused you of defrauding them.

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