On September 25, 2019, Justice Sherwood of the New York County Commercial Division issued a decision in Roy Food & Wine LLC v. Meregalli, 2019 NY Slip Op. 32875(U), dismissing a fraud claim based on an alleged misrepresentation of an intention to perform a contract, explaining: To state a cause of action for fraud, a... Read more »
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Posts Categorized: Fraud/Misrepresentation
Court Dismisses Federal Securities Fraud Claims
On September 26, 2019, Justice Scarpulla of the New York County Commercial Division issued a decision in Matter of Densply Sirona, Inc. v. XXX, 2019 NY Slip Op. 32849(U), dismissing federal securities fraud claims, explaining: I find that Plaintiffs’ statements concerning competition and the scope and prospects of Dentsply’s and Sirona’s business are expressions of... Read more »
Alleged Misrepresentation Regarding Future Performance Insufficient to Support Claim for Fraudulent Inducement
On July 8, 2019, Justice Scarpulla of the New York County Commercial Division issued a decision in Gluck v. Rosania, 2019 NY Slip Op. 32085(U), holding that alleged misrepresentations regarding future performance were insufficient to support a claim for fraudulent inducement, explaining: To state a claim for fraudulent inducement, the complaint must allege that the... Read more »
Merger Clause That Lacked Specificity Needed to Bar Fraud Claims
On July 15, 2019, Justice Sherwood of the New York County Commercial Division issued a decision in Doctors Allergy Formula, LLC v. Valeant Pharm. Intl., 2019 NY Slip Op. 32064(U), holding that a merger clause lacked the specificity needed to bar fraud claims, explaining: As a threshold issue, Valeant argues that plaintiffs fraud claims are... Read more »
Fraud Claim Not Duplicative of Contract Claim Because Alleged Misrepresentations Were Collateral to the Contract
On July 17, 2019, the Second Department issued a decision in Did-it.com, LLC v. Halo Group, Inc., 2019 NY Slip Op. 05644, holding that fraud claims were not duplicative of a contract claim because the alleged misrepresentations were collateral to the promises made in the contract, explaining: The essential elements of a cause of action... Read more »
Fraud Claims Not Duplicative of Malpractice Claims
On June 27, 2019, Justice Scarpulla of the New York County Commercial Division issued a decision in Kislev Partners, LLP v. Sidley LLP, 2019 NY Slip Op. 31850(U), declining to dismiss fraud claims as duplicative of a malpractice claim, explaining: Sidley argues that plaintiffs’ claims all essentially sound in professional malpractice and, therefore, have a... Read more »
Qui Tam Claim Not Subject to Particularity Requirements of CPLR 3106
On June 20, 2019, Justice Ostrager of the New York County Commercial Division issued a decision in State of New York v. Fieldturf USA Inc., 2019 NY Slip Op. 31726(U), holding that a qui tam claim was not subject to the particularity rules of CPLR 3106, explaining: While fraud claims must be pled with particularity... Read more »
Group Pleading Renders Fraud Claim Insufficient
On June 7, 2019, Justice Cohen of the New York County Commercial Division issued a decision in Arent Fox LLP v. JDN AA, LLC, 2019 NY Slip Op. 31593(U), holding that group pleading rendered a fraud claim insufficient, explaining: The newly added causes of action reference alleged conduct by “Defendant” or “Defendants,” without distinguishing between... Read more »
Fraud in the Inducement Claim Not Duplicative of Breach of Contract Claim
On May 1, 2019, the Second Department issued a decision in 260 Mamaroneck Ave., LLC v. Guaraglia, 2019 NY Slip Op. 03307, holding that a fraudulent inducement claim was not duplicative of a breach of contract claim, explaining: The plaintiff alleged, inter alia, that the defendant falsely represented in the contract of sale that he had... Read more »
Fraudulent Inducement Counterclaim Dismissed for Failure to Allege Out-of-Pocket Damages
On April 12, 2019, Justice Ostrager of the New York County Commercial Division issued a decision in Madeof, LLC v Bronson, 2019 NY Slip Op. 31058(U), dismissing a fraudulent inducement claim for failure to allege out-of-pocket damages, explaining: In Count IV Fraudulent Inducement, Bronson seeks damages for having divested herself from Bomganic via the Termination Agreement.... Read more »