On August 15, 2018, Justice Sherwood of the New York County Commercial Division issued a decision in Solomon Capital, LLC v. Lion Biotechnologies, Inc., 2018 NY Slip Op. 31977(U), dismissing a fraud claim for lack of reasonable reliance, explaining: With respect to the first and second alleged misrepresentations, that Sharbat had formerly run a U.S. public… Read more »
Blogs
Posts Categorized: Fraud/Misrepresentation
Fraud Claim Dismissed as Duplicative of Contract Claim: No Separate Damages Alleged
On August 6, 2018, Justice Masley of the New York County Commercial Division issued a decision in TJ PRP LLC v. Rag & Bone Holdings LLC, 2018 NY Slip Op. 31880(U), dismissing a fraud claim as duplicative of a contract claim, explaining: A fraud claim that arises from the same facts as an accompanying contract… Read more »
Fraud Claim Held Untimely Even Under Two-Year Discovery Rule
On July 23, 2018, Justice Platkin of the Albany County Commercial Division issued a decision in Essepian v. United Group of Companies, Inc., 2018 NY Slip Op. 51153(U), holding that a fraud claim was untimely even under New York’s two year discovery rule, explaining: Dismissal is warranted under CPLR 3211(a) (5) where the movant establishes… Read more »
FTC Rule Does Not Preempt General Business Law Claims Against Broadband Providers
On June 21, 2018, the First Department issued a decision in People v. Charter Communications, Inc., 2018 NY Slip Op. 04644, holding that a Federal Trade Commission rule did not preempt General Business Law claims, explaining: This civil enforcement action alleges that in the marketing of broadband Internet service defendants have engaged and continue to… Read more »
Fraud Claim Dismissed as Duplicative of Contract Claim
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 »
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 »