Blogs

Posts Categorized: Fraud/Misrepresentation

Posted: February 21, 2019

Fraud Claim Not Duplicative of Contract Claim Because it Was Alleged Misrepresentation Made Before Contract and Was Collateral to It

On February 5, 2019, the First Department issued a decision in Dynamic-Hakim, LLC v. Maloney, 2019 NY Slip Op. 00836, holding that a fraud claim was not duplicative of a breach of contract claim because the alleged misrepresentation was made before the contract was entered into and was collateral to it, explaining: The complaint alleges that... Read more »

Posted: February 17, 2019

Fraud Claim Dismissed for Failure to Show Out-of-Pocket Damages

On February 8, 2019, the Fourth Department issued a decision in Southwestern Invs. Group, LLC v. JH Portfolio Debt Equities, LLC, 2019 NY Slip Op. 01035, dismissing a fraud claim for failure to show out-of-pocket damages, explaining: To allege a cause of action based on fraud, plaintiff must assert a misrepresentation or a material omission of... Read more »

Posted: February 1, 2019

Complaint Found to State Aiding and Abetting Fraud Claim Against Law Firm

On January 24, 2019, the First Department issued a decision in Gansett One, LLC v. Husch Blackwell, LLP, 2019 NY Slip Op. 00531, holding that a plaintiff had stated a claim for aiding and abetting fraud against a law firm, explaining: The complaint states a claim for aiding and abetting fraud. Contrary to defendants’ contention, the... Read more »

Posted: January 30, 2019

Court Imposes Constructive Trust Over Proceeds of Fraud

On January 10, 2019, Justice Ash of the Kings County Commercial Division issued a decision in Kliban v. Vishnev, 2019 NY Slip Op. 30150(U), imposing a constructive trust over the proceeds of a fraud, explaining: With regards to Plaintiffs claim for a constructive trust against Susanna, Atlantic Ocean, Kogan, and AGVD for the monies paid to them... Read more »

Posted: January 8, 2019

Questions of Fact Preclude Summary Judgment Regarding Whether Plaintiff’s Reliance on Alleged Misrepresentations Was Reasonable

On December 27, 2018, Justice Bransten of the New York County Commercial Division issued a decision Norddeutsche Landesbank Girozentrale v. Tilton, 2018 NY Slip Op. 33386(U), holding that questions of fact precluded summary judgment on a fraud claim based on the issue of the plaintiff’s reliance on the alleged misrepresentations, explaining: Defendants argue Plaintiffs fail to adequately... Read more »

Posted: December 16, 2018

Disclaimers of Representations Not Specific Enough to Bar Fraud Claim

On November 19, 2018, Justice Ramos of the New York County Commercial Division issued a decision in Spicer v. Gardaworld Consulting (UK) Ltd., 2018 NY Slip Op. 33088(U), holding that an agreement’s disclaimers were not specific enough to bar a fraud claim, explaining: To state a claim for fraud, a plaintiff must allege with specificity the... Read more »

Posted: December 13, 2018

Fraud Claim Survives Despite Failure to Differentiate Between Acts of Different Defendants

On December 4, 2018, the First Department issued a decision in 47-53 Chrystie Holdings LLC v. Thuan Tam Realty Corp., 2018 NY Slip Op. 08239, upholding a fraud claim despite the plaintiff’s failure to differentiate between the acts of different defendants, explaining: The complaint states a cause of action for fraud against the individual defendants. Contrary to... Read more »

Posted: December 9, 2018

Fraud Claim Dismissed Because Plaintiff’s Alleged Reliance Was Not Reasonable

On November 28, 2018, Justice Schecter of the New York County Commercial Division issued a decision in Tall Tower Capital LLC v. Stonepeak Partners, LP, 2018 NY Slip Op. 33024(U), dismissing a fraud claim because the plaintiff’s alleged reliance was not reasonable, explaining: To allege a cause of action based on fraud, plaintiff must assert a... Read more »

Posted: November 13, 2018

Fraud Claim Dismissed Because of Sophisticated Investor’s Lack of Due Diligence

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 »