On January 27, 2015, the First Department issued a decision in Basis Pac-Rim Opportunity Fund (Master) v. TCW Asset Management Co., 2015 NY Slip Op. 00640, affirming the dismissal of a claim for negligent misrepresentation. The First Department explained:
The motion court properly dismissed the negligent misrepresentation cause of action since plaintiffs failed to establish the existence of a special relationship of trust or confidence between the parties required to support such a cause of action. Contrary to plaintiffs’ assertions, the involvement of a collateral manager in an arm’s length transaction does not establish a special relationship as a matter of law. Here, the sophisticated parties entered into an arm’s length transaction which precludes a finding of a special relationship.
(Internal citations omitted) (emphasis added).