Posts Categorized: Fraud/Misrepresentation

Posted: April 22, 2015

No Claim for Negligent Misrepresentation Without Special Relationship

On April 14, 2015, the First Department issued a decision in J.P. Morgan Securities Inc. v. Ader, 2015 NY Slip Op. 03071, affirming the dismissal of a claim for negligent misrepresentation. In J.P. Morgan Securities, the defendants asserted a counterclaim for negligent misrepresentation. The trial court granted the plaintiff’s motion for summary judgment dismissing that... Read more »

Posted: March 17, 2015

Buyer’s Fraudulent Inducement Claim Survives Motion To Dismiss Despite Contract Provision Disclaiming Reliance On Seller’s Representations

On March 3, 2015, the First Department issued a decision in TIAA Global Investments, LLC v. One Astoria Square LLC, 2015 NY Slip Op. 01768, applying the “special facts doctrine” to deny a motion to dismiss a fraudulent inducement claim despite a provision in the parties’ real estate contract disclaiming reliance on representations by the... Read more »

Posted: February 22, 2015

Martin Act Applies to Claims About Trading Venue as Well as Securities Traded in that Venue

On February 13, 2015, Justice Kornreich of the New York County Commercial division issued a decision in People v. Barclays Capital Inc., 2015 NY Slip Op. 25043, discussing the standard for a Martin Act claim. In Barclays Capital, the New York Attorney General brought a Martin Act claim against the defendant relating to “allegedly false... Read more »

Posted: February 3, 2015

No Negligent Misrepresentation Claim Without Special Relationship of Trust or Confidence

On January 27, 2015, the First Department issued a decision in Basis Pac-Rim Opportunity Fund (Master) v. TCW Asset Management Co., 2015 NY Slip Op. 00640, affirming the dismissal of a claim for negligent misrepresentation. The First Department explained: The motion court properly dismissed the negligent misrepresentation cause of action since plaintiffs failed to establish... Read more »

Posted: November 21, 2014

Court of Appeals Accepts Certified Questions Regarding Fraud and Assignability of Fraud Claims

On November 20, 2014, the Court of Appeals accepted certified questions from the Second Circuit, in Commonwealth of Pennsylvania Public School Employees’ Retirement System v. Morgan Stanley & Co. Incorporated, on two issues: (1) the standard for determining whether the transfer of a note includes a transfer of the transferor’s right to sue for fraud; (2) whether a... Read more »

Posted: October 12, 2014

Claim for Conspiracy to Commit Fraud Allowed as Claim for Liability for Fraud on Part of Conspirators

On September 23, 2014, Justice Schmidt of the Kings County Commercial Division issued a decision in Nadelson v. Zakharchenko, 2014 NY Slip Op. 32552(U), declining to dismiss a claim for conspiracy to commit fraud. In Nadelson, the plaintiffs sued the defendants over an investment in a restaurant. In denying the defendants’ motion to dismiss, the... Read more »

Posted: October 7, 2014

Fraud Claim Reinstated When Inaction Based on Fraudulent Statements Could be Presumed

On October 2, 2014, the First Department issued a decision in Fidelity National Title Insurance Co. v. NY Land Title Agency LLC, 2014 NY Slip Op. 06649, reinstating a fraud claim that the trial court had dismissed. In Fidelity National Title Insurance, the First Department reinstated a plaintiff’s fraud cause of action. In that claim, the... Read more »