On December 26, 2019, the First Department issued a decision in Unique Goals Intl., Ltd. v. Finskiy, 2019 NY Slip Op. 09381, affirming the dismissal of a fraud claim because the plaintiff’s reliance on the alleged representations was unreasonable, explaining: We affirm the dismissal of the fraud cause of action on the ground that the... Read more »
Blogs
Posts Categorized: Fraud/Misrepresentation
Trial Court Properly Declined to Decide Issue of Reasonable Reliance on Summary Judgment
On December 17, 2019, the First Department issued a decision in Norddeutsche Landesbank Girozentrale v. Tilton, 2019 NY Slip Op. 08965, holding that a trial court properly declined to decide the question of a plaintiff’s reasonable reliance on summary judgment, explaining: Summary judgment is precluded by issues of fact as to whether plaintiffs’ losses were... Read more »
Aiding and Abetting Fraud Claim Fails for Lack of Evidence of Substantial Assistance
On October 29, 2019, Justice Masley of the New York County Commercial Division issued a decision in Vincent V Hodes Family Irrevocable Trust v. Advance Entertainment LLC, 2019 NY Slip Op. 33233(U), holding that an aiding and abetting fraud claim failed for lack of evidence of substantial assistance in the alleged fraud, explaining: In order... Read more »
Fraud Claim Cannot be Based on Alleged Intention Not to Perform Contract
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 »
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 »