Blogs

Posts Categorized: Fraud/Misrepresentation

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 »

Posted: June 8, 2020

Fraudulent Inducement Claim Survives as Not Duplicative of Breach of Contract Claim

On May 4, 2020, Justice Cohen of the New York County Commercial Division issued a decision in SRS Capital Funds, Inc. v. Bujan, 2020 NY Slip Op. 31449(U), holding that a fraudulent inducement claim survived dismissal because it was not duplicative of the plaintiffs’ breach of contract claim, explaining: Plaintiffs’ fraudulent inducement claim is not... Read more »

Posted: June 4, 2020

Puffery Not Actionable Under Securities Laws

On May 15, 2020, Justice Ostrager of the New York County Commercial Division issued a decision in Matter of Sundial Growers Inc. Sec. Litig., 2020 NY Slip Op. 50579(U), holding that puffery is not actionable under the federal securities laws, explaining: Expressions of puffery and corporate optimism are not actionable under the securities laws. This... Read more »

Posted: May 28, 2020

Providing Legal Advice to Person Accused of Fraud Insufficient to Support Aiding and Abetting Claim

On April 23, 2020, Justice Cohen of the New York County Commercial Division issued a decision in Space Race, LLC v. Alabama Space Science Exhibit Commn., 2020 NY Slip Op. 31299(U), holding that providing legal advice to a person accused of fraud is an insufficient basis for a claim of aiding and abetting fraud, explaining:... Read more »

Posted: May 26, 2020

Continuing Wrong Doctrine Does Not Save Plaintiff’s Claims From Being Time-Barred

On April 28, 2020, Justice Cohen of the New York County Commercial Division issued a decision in Marjay N10, LLC v. Yashar, 2020 NY Slip Op. 31279(U), holding that the continuing wrong doctrine did not save the plaintiffs’ claims from being time-barred, explaining: Under CPLR § 3211(a)(5), Defendants bear the initial burden of establishing, prima... Read more »