Blogs

Posts Categorized: Fraud/Misrepresentation

Posted: February 11, 2018

Plaintiff Cannot Withstand Summary Judgment By Showing Question of Fact on One Element of Fraud Claim if it Fails on Another Element

On January 22, 2018, Justice Sherwood of the New York County Commercial Division issued a decision in xLon Beauty, LLC v. Day, 2018 NY Slip Op. 30142(U), holding that a plaintiff could not withstand summary judgment dismissing its fraud claim by showing that there was a question of fact regarding one element of the claim... Read more »

Posted: February 5, 2018

Fraud Claim Prevails; Plaintiff Not Required to Obtain Representations and Warranties From its Agent

On January 30, 2018, the First Department issued a decision in Schulhof v. Jacobs, 2018 NY Slip Op. 00528, granting plaintiff summary judgment on his fraud claim, explaining: The motion court also correctly granted summary judgment to plaintiff on his fraud claim. The issue of reasonable reliance can be resolved on a summary judgment motion.... Read more »

Posted: January 23, 2018

Company Cannot Sue its President and Sole Shareholder for Fraud; Defendant’s Knowledge of the Fraud is Imputed to the Company

On January 18, 2018, the First Department issued a decision in Doral Fabrics, Inc. v. Gold, 2018 NY Slip Op. 00342, holding that a company could not sue its president and sole shareholder for fraud, explaining: The second step of the scheme, the sham loan of the diverted funds to plaintiff Doral Fabrics, Inc., would... Read more »

Posted: January 10, 2018

Question of Fact Regarding Plaintiff’s Constructive Notice of Misrepresentation Precluded Dismissal

On January 9, 2018, the First Department issued a decision in Macquarie Capital (USA) Inc. v. Morrison & Foerster LLP, 2018 NY Slip Op. 00091, holding that questions of fact regarding the plaintiff’s constructive notice of misrepresentations it alleged that counsel negligently failed to uncover precluded dismissal of a malpractice claim, explaining: Defendant’s argument that... Read more »

Posted: December 29, 2017

Defendant’s Failure to Disclose its Business Plans Cannot be Basis for Fraud Claim

On December 14, 2017, Justice Scarpulla of the New York County Commercial Division issued a decision in Transit Funding Associates LLC v. Capital One Equipment Finance Corp., 2017 NY Slip Op. 32631(U), holding that absent an independent duty to do so, a defendant could not be held liable for fraud for failing to disclose its... Read more »

Posted: December 15, 2017

Fraud Claim Dismissed for Failing to Plead Scienter With Particularity

On December 12, 2017, the First Department issued a decision in Fried v. Lehman Brothers Real Estate Associates III, L.P., 2017 NY Slip Op. 08638, affirming the dismissal of a fraud claim for failure adequately to plead scienter with particularity, explaining: The first and second causes of action, alleging fraudulent misrepresentation and gross negligence in... Read more »

Posted: December 13, 2017

Fraud Claim Should Not Have Been Dismissed as Time-Barred; Question of Fact Existed Regarding When Fraud Should Have Been Discovered

On December 5, 2017, the First Department issued a decision in Berman v. Holland & Knight, LLP, 2017 NY Slip Op. 08489, holding that a fraud claim against a law firm should not have been dismissed because there was a question of fact regarding when the fraud should have been discovered, explaining: The two-year discovery... Read more »

Posted: November 20, 2017

Fraud Claim Time-Barred; Plaintiffs Failed Timely to Take Action After They Had Inquiry Notice of Claim

On November 14, 2017, the First Department issued a decision in Moses v. Dunlop, 2017 NY Slip Op. 07962, holding that a fraud claim was time-barred because of the plaintiffs’ failure timely to bring suit after they had inquiry notice of their claim, explaining: The fraud claims, to the extent they arise from conduct that... Read more »

Posted: October 29, 2017

Fraud Plaintiff Was Unreasonable in Relying on Representation Contradicted by Term Sheet

On October 13, 2017, Justice Masley of the New York County Commercial Division issued a decision in City’s 5th Ave. 54th St. LLC v. 685 Fifth Ave. Owner LLC, 2017 NY Slip Op. 32197(U), dismissing a fraud claim because the plaintiff’s reliance on an oral representation that was contradicted by the parties’ term sheet was... Read more »

Posted: September 29, 2017

Fraudulent Inducement Claims Dismissed on Summary Judgment: No Reasonable Reliance

On September 15, 2017, Justice Sherwood of the New York County Commercial Division issued a decision in SFR Holdings Ltd. v. Rice, 2017 NY Slip Op. 31974(U), dismissing a fraudulent inducement claim on summary judgment for lack of reasonable reliance, explaining: To prove fraudulent inducement to contract, a plaintiff must demonstrate the misrepresentation of a... Read more »