Blogs

Posts Categorized: Fraud/Misrepresentation

Posted: May 7, 2019

Fraudulent Inducement Counterclaim Dismissed for Failure to Allege Out-of-Pocket Damages

On April 12, 2019, Justice Ostrager of the New York County Commercial Division issued a decision in Madeof, LLC v Bronson, 2019 NY Slip Op. 31058(U), dismissing a fraudulent inducement claim for failure to allege out-of-pocket damages, explaining: In Count IV Fraudulent Inducement, Bronson seeks damages for having divested herself from Bomganic via the Termination Agreement.... Read more »

Posted: April 7, 2019

Claimed Deception Among Jewelry Wholesales Supported General Business Law 349 Claim Because Alleged Fraud Ultimately Harmed Public

On March 18, 2019, Justice Scarpulla of the New York County Commercial Divsion issued a decision in KS Trade LLC v. International Gemological Inst., Inc., 2019 NY Slip Op. 30728(U), holding that alleged deception among jewelry wholesalers supported a General Business Law Section 349 claim because the alleged fraud ultimately harmed the public, explaining: General Business Law... Read more »

Posted: March 31, 2019

Fraud Claim Should Not Have Been Dismissed As Duplicative of Breach of Contract Claim

On March 19, 2019, the First Department issued a decision in Ohm NYC LLC v. Times Sq. Assoc. LLC, 2019 NY Slip Op. 02034, holding that a fraud claim should not have been dismissed as duplicative of a breach of contract claim, explaining; The complaint alleges multiple instances of defendants misrepresenting to plaintiff that the Bridge, a... Read more »

Posted: March 28, 2019

Fraud Claim Dismissed for Failure to Allege Who Made Misrepresentation and Where, When and How it was Made

On March 12, 2019, Justice Sherwood of the New York County Commercial Division issued a decision in Q Semiconductor Inc. v. GlobalFoundries U.S. 2 LLC, 2019 NY Slip Op. 30603(U), dismissing a fraud claim for failure to plead it with particularity, explaining: CPLR 3016 provides that where a cause of action or defense is based upon... Read more »

Posted: February 21, 2019

Fraud Claim Not Duplicative of Contract Claim Because it Was Alleged Misrepresentation Made Before Contract and Was Collateral to It

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 »

Posted: February 17, 2019

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 »

Posted: February 1, 2019

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 »

Posted: January 30, 2019

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 »

Posted: January 8, 2019

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 »