On July 1, 2021, Justice Platkin of the Albany County Commercial Division issued a decision in Berkshire Bank v. Pioneer Bank, 2021 NY Slip Op. 50619(U), holding that a negligent misrepresentation claim failed because it did not adequately allege a special relationship between the plaintiff and defendant, explaining: A fiduciary relationship exists between two persons... Read more »
Blogs
Posts Categorized: Fraud/Misrepresentation
Allegations the Release Was Procured by Fraud Fail When the Alleged Fraud is the Fraud That is the Subject of the Release
On June 2, 2021, Justice Ostrager of the New York County Commercial Division issued a decision in Chadha v. Wahedna, 2021 NY Slip Op. 50509(U), holding that a fraud claim based on allegations that a release was procured by fraud fail when the alleged fraud is the fraud that was the subject of the release,... Read more »
Allegations of Plaintiff’s Due Diligence Sufficient to Establish its Reasonable Reliance Necessary to State Fraud Claim
On May 27, 2021, the First Department issued a decision in Bullen v. CohnReznick, LLP, 2021 NY Slip Op. 03369, holding that allegations of the plaintiff’s due diligence were sufficient to establish that the plaintiff’s reliance on the defendant’s misrepresentations was reasonable, explaining: Plaintiffs also sufficiently alleged the element of reasonable reliance. They allegedly took... Read more »
Fraudulent Inducement Claim Survives Despite Defendant’s Argument That Plaintiff Failed to Exercise Due Diligence
On May 25, 2021, the First Department issued a decision in VXI Lux Holdco, S.A.R.L. v. SIC Holdings, LLC, 2021 NY Slip Op. 03294, upholding a fraudulent inducement claim despite the defendant’s argument that the plaintiff failed to exercise due diligence, explaining: Plaintiff alleges that the $3 million tax underpayment, which was an unaccounted expense,... Read more »
Fraud Claim Cannot be Based on Misrepresentations of an Intention to Perform a Contract
On May 13, 2021, the First Department issued a decision in 320 W. 115 Realty LLC v. All Bldg. Constr. Corp., 2021 NY Slip Op. 03107, holding that a fraud claim cannot be based on the misrepresentation of an intent to perform an agreement, explaining: In support of the fraudulent inducement claim, plaintiff’s main allegations... Read more »
Misrepresentations Causing Investor Not to Sell a Security (Holder Claims) Not Actionable Under New York Law
On April 22, 2021, the First Department issued a decision in Feinberg v. Marathon Patent Group Inc., 2021 NY Slip Op. 02452, holding that holder claims are not actionable under New York law, explaining: We also find that the court correctly dismissed the state law claims for common-law fraud and negligent misrepresentation, which are “holder”... Read more »
Conclusory Allegations Insufficient Basis for Judiciary Law 487 Claim
On February 10, 2021, the Second Department issued a decision in Cordell Marble Falls, LLC v. Kelly, 2021 NY Slip Op. 00833, holding that conclusory allegations were an insufficient basis for a Judiciary Law 487 claim, explaining: Under Judiciary Law § 487(1), an attorney who is guilty of any deceit or collusion, or consents to... Read more »
State AG Can Bring Breach of Contract Claim Against Investment Advisor Under Parens Patriae
On February 4, 2021, Justice Ostrager of the New York County Commercial Division issued a decision in People v. Allen, 2021 NY Slip Op. 30334(U), holding that the state Attorney General can bring a breach of contract claim against an investment advisor, explaining: [D]efendants argue that their alleged conduct at most constitutes a breach of... Read more »
Fraud Claim Fails for Lack of Justifiable Reliance
On January 19, 2021, the First Department issued a decision in United Natural Foods, Inc. v. Goldman Sachs Group, 2021 NY Slip Op. 00276, holding that a fraud claim failed for lack of justifiable reliance, explaining: The fraud claim was properly dismissed because plaintiff did not sufficiently plead justifiable reliance. Plaintiff could have asked follow-up... Read more »
Non-Consumer Can Bring GBL 349 Claim if Public at Large Has Been Harmed
On January 19, 2021, the First Department issued a decision in KS Trade LLC v. International Gemological Inst., Inc., 2021 NY Slip Op. 00259, holding that a non-consumer can bring GBL 349 claims if the public at large has been harmed, explaining: The court properly upheld the claim under GBL 349 against defendants International Gemological... Read more »