Posts Categorized: Fraud/Misrepresentation

Posted: December 25, 2020

Fraud Claims Dismissed for Failure to Perform Due Diligence

On December 15, 2020, the First Department issued a decision in MBF Clearing Corp. v. JPMorgan Chase Bank, N.A., 2020 NY Slip Op. 07504, dismissing fraud-based claims for lack of due diligence, explaining: The fraudulent misrepresentation claims do not allege justifiable reliance on the alleged misrepresentations. Plaintiff, a sophisticated party, could readily have determined for... Read more »

Posted: December 24, 2020

Fraud Claim Time-Barred Because Plaintiff Was on Inquiry Notice More Than Two Years Before Suit Filed

On December 8, 2020, Justice Friedman of the New York County Commercial Division issued a decision in Ambac Assur. Corp. v. Countrywide Home Loans, Inc., 2020 NY Slip Op. 34044(U), holding that a fraud claim was time-barred because the plaintiff was on inquiry notice of its claim more than two years before the suit was... Read more »

Posted: December 14, 2020

Plaintiff Adequately Alleged Aid and Abetting Fraud Where Defendant Allegedly Devised Scheme That Was Used to Deceive Plaintiff

On December 1, 2020, the First Department issued a decision in Bankers Conseco Life Ins. Co. v. KPMG LLP, 2020 NY Slip Op. 07128, holding that a plaintiff had adequately alleged aiding and abetting fraud, explaining: We find that the motion court erred in dismissing plaintiffs’ claim for aiding and abetting fraud. The complaint adequately... Read more »

Posted: December 5, 2020

Questions Regarding Application of Special Facts Doctrine Preclude Summary Judgment

On November 24, 2020, the First Department issued a decision in Sports Tech. Applications, Inc. v. MLB Advanced Media, L.P., 2020 NY Slip Op. 06973, holding that questions of fact regarding the application of the special facts doctrine precluded summary judgment, explaining: Plaintiff also raised issues of fact as to its fraud claims. Although there... Read more »

Posted: November 22, 2020

Fraud Claim Based on Omissions Fails in Light of Disclosure that Not All Material Information Was Being Disclosed for Securities Law Reasons

On November 5, 2020, Justice Borrok of the New York County Commercial Division issued a decision in Silver Point Capital Fund, L.P. v. Riviera Resources, Inc., 2020 NY Slip Op. 51308(U), holding that a fraud claim based on an omission fails because the material information was withheld for securities law reasons, explaining: To state a... Read more »

Posted: November 10, 2020

Conclusory Allegations Doom Fraud Claim

On October 16, 2020, Justice Borrok of the New York County Commercial Division issued a decision in Kirschenbaum v. De Baets, 2020 NY Slip Op. 33406(U), holding that conclusory allegations were an insufficient basis for a fraud claim, explaining: A claim for fraud requires a material misrepresentation of a fact, knowledge of its falsity, an... Read more »

Posted: September 11, 2020

Breach of Contract and Fraud Claims Cannot Co-Exist if They Are Based on the Same Underlying Facts

On August 24, 2020, Justice Masley issued a Commercial Division decision addressing when a fraud claim is duplicative of a contract claim warranting dismissal under CPLR 3211. In 5 E. 59th Realty Holding Co., LLC v. Leahey, 2020 NY Slip Op. 32751(U), Justice Masley confirmed longstanding New York precedent that a fraud claim and a... Read more »

Posted: August 24, 2020

Fraudulent Inducement Claim Cannot Be Based on Alleged Lack of Intention to Perform a Contract

On August 19, 2020, the Second Department issued a decision in Cypress Med. Surgical Servs., LLC v Jodol Realty Corp., 2020 NY Slip Op. 04534, holding that a fraudulent inducement claim cannot be based on an alleged lack of intention to perform a contract, explaining: We also agree with the Supreme Court’s determination to grant... Read more »

Posted: July 20, 2020

Court Upholds Fraud Claim Based on Damages Resulting From Selling at a Fraudulently-Induced Deflated Price

On June 29, 2020, Justice Masley of the New York County Commercial Division issued a decision in Community Assn. of the E. Harlem Triangle, Inc. v. Butts, 2020 NY Slip Op. 32163(U), upholding a fraud claim based on damages resulting from selling at a fraudulently-induced deflated price, explaining: In New York, as in multiple other... Read more »