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 »
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Posts Categorized: Fraud/Misrepresentation
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 »
Contractual Disclaimers Barred Fraud Claim
On March 21, 2019, Justice Sherwood of the New York County Commercial Division issued a decision in 438 W. 20 St., LLC v. Bares, 2019 NY Slip Op. 30719(U), holding that contractual disclaimers barred a fraud claim, explaining: A fraud claim requires proof by clear and convincing evidence as to each element of the claim. The... Read more »
Claimed Deception Among Jewelry Wholesales Supported General Business Law 349 Claim Because Alleged Fraud Ultimately Harmed Public
On March 18, 2019, Justice Scarpulla of the New York County Commercial Divsion issued a decision in KS Trade LLC v. International Gemological Inst., Inc., 2019 NY Slip Op. 30728(U), holding that alleged deception among jewelry wholesalers supported a General Business Law Section 349 claim because the alleged fraud ultimately harmed the public, explaining: General Business Law... Read more »
Fraud Claim Should Not Have Been Dismissed As Duplicative of Breach of Contract Claim
On March 19, 2019, the First Department issued a decision in Ohm NYC LLC v. Times Sq. Assoc. LLC, 2019 NY Slip Op. 02034, holding that a fraud claim should not have been dismissed as duplicative of a breach of contract claim, explaining; The complaint alleges multiple instances of defendants misrepresenting to plaintiff that the Bridge, a... Read more »
Fraud Claim Dismissed for Failure to Allege Who Made Misrepresentation and Where, When and How it was Made
On March 12, 2019, Justice Sherwood of the New York County Commercial Division issued a decision in Q Semiconductor Inc. v. GlobalFoundries U.S. 2 LLC, 2019 NY Slip Op. 30603(U), dismissing a fraud claim for failure to plead it with particularity, explaining: CPLR 3016 provides that where a cause of action or defense is based upon... Read more »
Fraud Claim Not Duplicative of Contract Claim Because it Was Alleged Misrepresentation Made Before Contract and Was Collateral to It
On February 5, 2019, the First Department issued a decision in Dynamic-Hakim, LLC v. Maloney, 2019 NY Slip Op. 00836, holding that a fraud claim was not duplicative of a breach of contract claim because the alleged misrepresentation was made before the contract was entered into and was collateral to it, explaining: The complaint alleges that... Read more »