Commercial Division Blog
Posted: January 30, 2016 / Categories Commercial, Fraud/Misrepresentation
Fraud Claims Barred by Disclaimer Where Party had Means to Discover Facts Before Signing Contract
On January 19, 2016, the First Department issued a decision in Harmit Realties LLC v. 835 Avenue of the Americas, L.P., 2016 NY Slip Op. 00287, holding that the defendant's fraud counterclaims were barred by a disclaimer which it had the means to discover before entering into an agreement, explaining:.
The motion court correctly determined that the counterclaims for fraud, negligent misrepresentation, and reformation are precluded by the subject agreements' express disclaimers stating that [the plaintiff/counterclaim-defendant] made no representations concerning the amount of its utilized development rights and excess development rights, where defendants had the means to discover the correct amounts before they entered into the agreements.
(Internal quotations and citations omitted).