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 »
Blogs
Posts Categorized: Fraud/Misrepresentation
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 »
New York Does Not Recognize “Holder Claims”
On April 23, 2018, Justice Kornreich of the New York County Commercial Division issued a decision in Q China Holdings, Ltd. v. TZG Capital Ltd., 2018 NY Slip Op. 30779(U), dismissing a holder claim, that is, a claim for damages for being fraudulently induced not to sell securities, explaining: QCH has not stated a claim… Read more »
Fraudulent Inducement Claim Dismissed on Summary Judgment for Lack of Reasonable Reliance
On April 9, 2018, Justice Kornreich of the New York County Commercial Division issued a decision in INTL FCStone Markets, LLC v. Corrib Oil Co. Ltd., 2018 NY Slip Op. 30646(U), dismissing a fraudulent inducement claim on summary judgment for lack of reasonable reliance, explaining: Corrib also cannot maintain a cause of action for fraud… Read more »
Fraudulent Inducement Claim Against Lawyer Upheld; Client Was Reasonable in Relying on Counsel Rather Than Reading Agreement Closely
On April 10, 2018, the First Department issued a decision in Suttongate Holdings Ltd. v. Laconm Management N.V., 2018 NY Slip Op. 02424, upholding a fraudulent inducement claim against a lawyer, explaining: The allegations of the complaint state a cause of action for fraudulent inducement. The well settled principle relied on by David that a… Read more »
Internet Providers’ Claims of Access Speed “Up To” A Certain Number Can Be Subject of Fraud Claim if They Cannot Achieve That Speed
On February 13, 2018, Justice Sherwood of the New York County Commercial Division issued a decision in People v. Charter Communications, Inc., 2018 NY Slip Op. 30253(U), holding that internet providers’ claims of speed “up to” a certain number can be the subject of a fraud claim, explaining: Defendants argue that their representations regarding internet… Read more »
No Claim for Civil Conspiracy Without An Underlying Tort
On February 7, 2018, the Second Department issued a decision in McSpedon v. Levine, 2018 NY Slip Op. 00826, affirming the dismissal of a civil conspiracy to defraud claim because there was no underlying fraud, explaining: New York does not recognize civil conspiracy to commit a tort as an independent cause of action. However, a… Read more »
Plaintiff Cannot Withstand Summary Judgment By Showing Question of Fact on One Element of Fraud Claim if it Fails on Another Element
On January 22, 2018, Justice Sherwood of the New York County Commercial Division issued a decision in xLon Beauty, LLC v. Day, 2018 NY Slip Op. 30142(U), holding that a plaintiff could not withstand summary judgment dismissing its fraud claim by showing that there was a question of fact regarding one element of the claim… Read more »
Fraud Claim Prevails; Plaintiff Not Required to Obtain Representations and Warranties From its Agent
On January 30, 2018, the First Department issued a decision in Schulhof v. Jacobs, 2018 NY Slip Op. 00528, granting plaintiff summary judgment on his fraud claim, explaining: The motion court also correctly granted summary judgment to plaintiff on his fraud claim. The issue of reasonable reliance can be resolved on a summary judgment motion…. Read more »