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 »
Blogs
Posts Categorized: Fraud/Misrepresentation
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 »
Dismissal With Prejudice of Federal Securities Law Claims Does Not Bar Common Law Fraud Claims
On October 30, 2018, Justice Sherwood of the New York County Commercial Division issued a decision in Brown v. Cerebus Capital Mgt., L.P., 2018 NY Slip Op. 32782(U), holding that the prior dismissal with prejudice of federal securities law claims does not bar new common law fraud claims, explaining: In the first through eighth causes of... Read more »
Intention Not to Perform Contract Cannot Be Basis of Fraudulent Inducement Claim
On September 21, 2018, Justice Sherwood of the New York County Commercial Division issued a decision in Bryan v. Slothower, 2018 NY Slip Op. 32396(U), holding that an intention not to perform cannot be the basis of a fraudulent inducement claim, explaining: Plaintiff argues that Slothower’s alleged preconceived intent not to perform is sufficient to... Read more »
Fraud Claim Dismissed for Lack of Reasonable Reliance
On August 15, 2018, Justice Sherwood of the New York County Commercial Division issued a decision in Solomon Capital, LLC v. Lion Biotechnologies, Inc., 2018 NY Slip Op. 31977(U), dismissing a fraud claim for lack of reasonable reliance, explaining: With respect to the first and second alleged misrepresentations, that Sharbat had formerly run a U.S. public... Read more »
Fraud Claim Dismissed as Duplicative of Contract Claim: No Separate Damages Alleged
On August 6, 2018, Justice Masley of the New York County Commercial Division issued a decision in TJ PRP LLC v. Rag & Bone Holdings LLC, 2018 NY Slip Op. 31880(U), dismissing a fraud claim as duplicative of a contract claim, explaining: A fraud claim that arises from the same facts as an accompanying contract... Read more »