On October 29, 2018, Justice Sherwood of the New York County Commercial Division issued a decision in Unique Goals Intl., Ltd. v. Finskiy, 2018 NY Slip Op. 32788(U), dismissing a fraud claim because of the sophisticated plaintiff’s lack of due diligence, explaining: The first cause of action for fraud is asserted by Faith Union and Unique… Read more »
Blogs
Posts Categorized: Fraud/Misrepresentation
Dismissal With Prejudice of Federal Securities Law Claims Does Not Bar Common Law Fraud Claims
On October 30, 2018, Justice Sherwood of the New York County Commercial Division issued a decision in Brown v. Cerebus Capital Mgt., L.P., 2018 NY Slip Op. 32782(U), holding that the prior dismissal with prejudice of federal securities law claims does not bar new common law fraud claims, explaining: In the first through eighth causes of… Read more »
Intention Not to Perform Contract Cannot Be Basis of Fraudulent Inducement Claim
On September 21, 2018, Justice Sherwood of the New York County Commercial Division issued a decision in Bryan v. Slothower, 2018 NY Slip Op. 32396(U), holding that an intention not to perform cannot be the basis of a fraudulent inducement claim, explaining: Plaintiff argues that Slothower’s alleged preconceived intent not to perform is sufficient to… Read more »
Fraud Claim Dismissed for Lack of Reasonable Reliance
On August 15, 2018, Justice Sherwood of the New York County Commercial Division issued a decision in Solomon Capital, LLC v. Lion Biotechnologies, Inc., 2018 NY Slip Op. 31977(U), dismissing a fraud claim for lack of reasonable reliance, explaining: With respect to the first and second alleged misrepresentations, that Sharbat had formerly run a U.S. public… Read more »
Fraud Claim Dismissed as Duplicative of Contract Claim: No Separate Damages Alleged
On August 6, 2018, Justice Masley of the New York County Commercial Division issued a decision in TJ PRP LLC v. Rag & Bone Holdings LLC, 2018 NY Slip Op. 31880(U), dismissing a fraud claim as duplicative of a contract claim, explaining: A fraud claim that arises from the same facts as an accompanying contract… Read more »
Fraud Claim Held Untimely Even Under Two-Year Discovery Rule
On July 23, 2018, Justice Platkin of the Albany County Commercial Division issued a decision in Essepian v. United Group of Companies, Inc., 2018 NY Slip Op. 51153(U), holding that a fraud claim was untimely even under New York’s two year discovery rule, explaining: Dismissal is warranted under CPLR 3211(a) (5) where the movant establishes… Read more »
FTC Rule Does Not Preempt General Business Law Claims Against Broadband Providers
On June 21, 2018, the First Department issued a decision in People v. Charter Communications, Inc., 2018 NY Slip Op. 04644, holding that a Federal Trade Commission rule did not preempt General Business Law claims, explaining: This civil enforcement action alleges that in the marketing of broadband Internet service defendants have engaged and continue to… Read more »
Fraud Claim Dismissed as Duplicative of Contract Claim
On June 5, 2018, Justice Sherwood of the New York County Commercial Division issued a decision in Board of Managers of 250 Bowery Condominium v. 250 VE LLC, 2018 NY Slip Op. 31168(U), dismissing a fraud claim as duplicative of a breach of contract claim, explaining: Sponsor Defendants also move to dismiss the fifth cause… Read more »
Martin Act Claims are Subject to Three-Year Statute of Limitations
On June 12, 2018, the Court of Appeals issued a decision in People v. Credit Suisse Sec. (USA) LLC, 2018 NY Slip Op. 04272, holding that Martin Act claims have a three year statute of limitations, explaining: The first issue before us is whether Martin Act claims are governed by CPLR 214(2), imposing a three-year… Read more »
Fraud Claim Dismissed; Claim Was Derivative, Not Direct
On May 30, 2018, Justice Masley of the New York County Commercial Division issued a decision in Khan v. Garg, 2018 NY Slip Op. 31061(U), dismissing a fraud claim because it did not plead a direct claim for fraud, explaining: With respect to Garg, defendants contend that the fraud claim inadequately pleads the elements of… Read more »