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 »
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Posts Categorized: Fraud/Misrepresentation
Fraud Claim Dismissed as Duplicative of Contract Claim
On August 24, 2020, Justice Masley of the New York County Commercial Division issued a decision in 5 E. 59th Realty Holding Co., LLC v. Leahey, 2020 NY Slip Op. 32751(U), dismissing a fraud claim as duplicative of a contract claim, explaining: Plaintiff’s fraud claim must be dismissed as duplicative of the contract claim against... Read more »
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 »
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 »
Fraud Claim Cannot be Based on Lost Profits
On June 25, 2020, the First Department issued a decision in Arena Riparian LLC v. CSDS Aircraft Sales & Leasing Co., 2020 NY Slip Op. 03589, holding that a fraud claim cannot be based on lost profits, explaining: The fraud-based claims should also be dismissed because plaintiffs have not adequately alleged actual pecuniary loss sustained... Read more »
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 »
GBL 349 Claim Fails for Lack of Consumer Impact
On May 8, 2020, Justice Cohen of the New York County Commercial Division issued a decision in Time Warner Cable Enters., LLC v. Accessium Group, Inc., 2020 NY Slip Op. 31426(U), dismissing a GBL 349 claim for lack of consumer impact, explaining: To state a claim under GBL § 349, Accessium must allege that TWC... Read more »
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 »
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 »
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 »