Blogs

Posts Categorized: Fraud/Misrepresentation

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 »

Posted: September 29, 2014

No Claim for Fraudulent Concealment Where no Duty to Disclose

On September 23, 2014, the First Department issued a decision in SSA Holdings LLC v. Kaplan, 2014 NY Slip Op. 06257, affirming the dismissal of a claim for fraudulent concealment. In SSA Holdings, the First Department held that the plaintiff failed to state a claim against the defendants for fraudulent concealment because: [The] defendants had... Read more »

Posted: September 10, 2014

Fraud Claim Dismissed As Duplicative of Breach of Contract Claim

On September 4, 2014, the First Department issued a decision in Beta Holdings, Inc. v. Goldsmith, 2014 NY Slip Op. 06035, dismissing a fraud counterclaim as duplicative of the counterclaim-plaintiffs’ breach of contract claim. In Beta Holdings, the plaintiffs, entities associated with a private equity fund, filed suit against the principals of a company the fund... Read more »

Posted: August 30, 2014

Sophisticated Party Cannot Use Lack of Time as Excuse for Failure to Exercise Due Diligence

On August 6, 2014, Justice Sherwood of the New York County Commercial Division issued a decision in Remediation Capital Funding LLC v. Noto, 2014 NY Slip Op. 32157(U), dismissing a fraud claim for failure to show due diligence. In Remediation Capital Funding , the plaintiffs asserted claims of fraud and fraudulent conveyance in connection with a... Read more »

Posted: August 27, 2014

Defendant Can Be Held Liable Statements in Preliminary Offering Materials it Later Disclaimed

On August 5, 2014, Justice Schweitzer of the New York County Commercial Division issued a decision in NRAM PLC v. Societe Generale Corp., 2014 NY Slip Op. 32155(U), holding that the plaintiff had stated a claim for fraud based on statements the defendant later had disclaimed.  In NRAM PLC, the plaintiff brought “causes of action... Read more »

Posted: August 16, 2014

Lack of Due Diligence no Bar to Fraud Claim When no Amount of Diligence Would have Uncovered Fraud

On August 4, 2014, Justice Schweitzer of the New York County Commercial Division issued a decision in Higher Education Management Group, Inc. v. Aspen University Inc., 2014 NY Slip Op. 32106(U), declining to dismiss a fraud claim for lack of due diligence when no amount of diligence would have uncovered the fraud. Counterclaim defendants contend... Read more »