A claim for fraud requires “a material misrepresentation of a fact, knowledge of its falsity, an intent to induce reliance, justifiable reliance by the plaintiff and damages.” In First Trinity Life Ins. Co. v. Advance Funding...more
6/3/2025
/ Appeals ,
Appellate Courts ,
Business Litigation ,
Fraud ,
Insurance Litigation ,
Jurisdiction ,
Lottery ,
Misrepresentation ,
New York ,
Scienter ,
Summary Judgment
The justifiable reliance element has been described as a “fundamental precept” and a “venerable rule”. The requirement is one of the five elements of a fraud cause of action: (1) a misrepresentation or a material omission of...more
1/6/2025
/ Appeals ,
Cause of Action Accrual ,
Damages ,
Due Diligence ,
Fraud ,
Joint Tenancy with Right of Survivorship ,
Justifiable Reliance ,
Marital Assets ,
Misrepresentation ,
Omissions ,
Ownership Interest ,
Scienter ,
Summary Judgment
To state a cause of action for fraud, a plaintiff must allege “a material misrepresentation of a fact, knowledge of its falsity, an intent to induce reliance, justifiable reliance by the plaintiff and damages.” The...more
6/3/2024
/ Appeals ,
Breach of Contract ,
Breach of Duty ,
CPLR ,
Damages ,
Fiduciary Duty ,
Fraud ,
Gross Negligence ,
Justifiable Reliance ,
Limited Partnerships ,
Misrepresentation ,
New York ,
Scienter
It is not often that we examine a case involving the doctrine of champerty. The last time we did so was on March 8, 2023 (here). We also examined the champerty doctrine in 2021 (here), 2020 (here), and 2016 (here)....more
4/1/2024
/ Asset Purchaser ,
Bonds ,
Certifications ,
Champerty ,
Commercial Bank Accounts ,
Fraud ,
Liquidation ,
Loans ,
Luxembourg ,
Misrepresentation ,
Mortgage-Backed Securities ,
Negligence ,
New York ,
Private Right of Action ,
Promissory Notes ,
Special Purpose Vehicles
A common theme in commercial litigation is the assertion of a breach of contract claim and a fraudulent inducement claim. A plaintiff claiming a breach of contract must show (1) the existence of a contract; (2) the...more
By: Jeffrey M. Haber In TD Bank, N.A. v. Keenan, 2023 N.Y. Slip Op. 06158 (2d Dept. Nov. 29, 2023) (here), the Appellate Division, Second Department examined the often “nettlesome” question of whether a plaintiff claiming...more
12/14/2023
/ Breach of Contract ,
Default ,
Due Diligence ,
Foreclosure ,
Fraud ,
HELOC ,
Misrepresentation ,
Mortgages ,
Objective Falsity ,
Omissions ,
Reasonable Reliance Claims ,
Title Insurance ,
Unjust Enrichment ,
Verification Requirements
As we have often explained in the articles in which we have examined fraud claims, to withstand a motion to dismiss, the plaintiff must plead fraud with particularity as required under CPLR § 3106(b), cannot lump all the...more
On August 23, 2023, the Appellate Division, Second Department issued two decisions that briefly touched upon fraud causes of action: Hershman v. Bank of N.Y. Mellon, 2023 N.Y. Slip Op. 04369 (2d Dept. Aug. 22, 2023) (here),...more