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 »
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Posts Categorized: Fraud/Misrepresentation
Fraud Claim Dismissed for Failure to Show Out-of-Pocket Damages
On February 8, 2019, the Fourth Department issued a decision in Southwestern Invs. Group, LLC v. JH Portfolio Debt Equities, LLC, 2019 NY Slip Op. 01035, dismissing a fraud claim for failure to show out-of-pocket damages, explaining: To allege a cause of action based on fraud, plaintiff must assert a misrepresentation or a material omission of... Read more »
Complaint Found to State Aiding and Abetting Fraud Claim Against Law Firm
On January 24, 2019, the First Department issued a decision in Gansett One, LLC v. Husch Blackwell, LLP, 2019 NY Slip Op. 00531, holding that a plaintiff had stated a claim for aiding and abetting fraud against a law firm, explaining: The complaint states a claim for aiding and abetting fraud. Contrary to defendants’ contention, the... Read more »
Court Imposes Constructive Trust Over Proceeds of Fraud
On January 10, 2019, Justice Ash of the Kings County Commercial Division issued a decision in Kliban v. Vishnev, 2019 NY Slip Op. 30150(U), imposing a constructive trust over the proceeds of a fraud, explaining: With regards to Plaintiffs claim for a constructive trust against Susanna, Atlantic Ocean, Kogan, and AGVD for the monies paid to them... Read more »
Questions of Fact Preclude Summary Judgment Regarding Whether Plaintiff’s Reliance on Alleged Misrepresentations Was Reasonable
On December 27, 2018, Justice Bransten of the New York County Commercial Division issued a decision Norddeutsche Landesbank Girozentrale v. Tilton, 2018 NY Slip Op. 33386(U), holding that questions of fact precluded summary judgment on a fraud claim based on the issue of the plaintiff’s reliance on the alleged misrepresentations, explaining: Defendants argue Plaintiffs fail to adequately... Read more »
Court Erred in Dismissing GBL Section 349 Claim
On January 3, 2019, the Third Department issued a decision in Belair Care Ctr., Inc. v. Cool Insuring Agency, Inc., 2019 NY Slip Op. 00015, holding that a motion court erred in dismissing a GBL Section 349 claim, explaining: The threshold requirement of consumer-oriented conduct is met by a showing that the acts or practices... Read more »
Disclaimers of Representations Not Specific Enough to Bar Fraud Claim
On November 19, 2018, Justice Ramos of the New York County Commercial Division issued a decision in Spicer v. Gardaworld Consulting (UK) Ltd., 2018 NY Slip Op. 33088(U), holding that an agreement’s disclaimers were not specific enough to bar a fraud claim, explaining: To state a claim for fraud, a plaintiff must allege with specificity the... Read more »
Fraud Claim Survives Despite Failure to Differentiate Between Acts of Different Defendants
On December 4, 2018, the First Department issued a decision in 47-53 Chrystie Holdings LLC v. Thuan Tam Realty Corp., 2018 NY Slip Op. 08239, upholding a fraud claim despite the plaintiff’s failure to differentiate between the acts of different defendants, explaining: The complaint states a cause of action for fraud against the individual defendants. Contrary to... Read more »
Fraud Claim Dismissed Because Plaintiff’s Alleged Reliance Was Not Reasonable
On November 28, 2018, Justice Schecter of the New York County Commercial Division issued a decision in Tall Tower Capital LLC v. Stonepeak Partners, LP, 2018 NY Slip Op. 33024(U), dismissing a fraud claim because the plaintiff’s alleged reliance was not reasonable, explaining: To allege a cause of action based on fraud, plaintiff must assert a... Read more »
Fraud Claim Dismissed Because of Sophisticated Investor’s Lack of Due Diligence
On October 29, 2018, Justice Sherwood of the New York County Commercial Division issued a decision in Unique Goals Intl., Ltd. v. Finskiy, 2018 NY Slip Op. 32788(U), dismissing a fraud claim because of the sophisticated plaintiff’s lack of due diligence, explaining: The first cause of action for fraud is asserted by Faith Union and Unique... Read more »