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Allegations That Defendant Lacked a General Intent to Perform Is Insufficient to Support Fraud Claim
It has long been held that “promissory statements as to what will be done in the future are not actionable.” Adams v. Clark , 239 N.Y. 403, 410 (1925). However, when the promissory statement is “made with a preconceived and undisclosed intention of not performing it,” it becomes an actionable misrepresentation of existing fact. Sabo v. Delman , 3 N.Y.2d 155 (1957). The foregoing principles have been examined by this Blog numerous times ( e.g. , here and here ). In today’s ar
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Jan 18, 20213 min read
SPECIFIC PERFORMANCE (THAT’S WHAT I WANT) – WOULD BE A TERRIBLE SONG TITLE
The lyrics to the song “Money (That’s What I Want)”, written by Berry Gordy and Janie Bradford and covered by, inter alia , by The Beatles, seem shortsighted when contemplating available remedies in a breach of contract action. Thus, according to the song “money don’t get everything, it’s true, what it don’t get, I can’t use, now give me money, that’s what I want.” While money damages in an action at law may “afford a full and complete remedy” to make a plaintiff whole in t
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Jan 15, 20215 min read
Fraud by Omission
When a person claims fraud, he/she typically claims that the alleged wrongdoer made an affirmative misrepresentation of fact. Fraud does not, however, always concern an affirmative statement. Sometimes a person can perpetrate a fraud through the omission of a material fact. For this reason, when alleging fraud, a plaintiff may allege that the defendant made “a misrepresentation or a material omission of fact which was false and known to be false.” Mandarin Trading Ltd. v. Wil
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Jan 13, 20216 min read
When Is a Waiver Not A Waiver? When You Amend as of Right
When a plaintiff initiates a lawsuit, he/she must file and serve a summons and complaint. Typically, the plaintiff will hire a process server to effect service. If the process server errs in making service (that is, service is deemed to be improper and defective), the defendant may object and assert an affirmative defense that the court lacks personal jurisdiction over him/her because service was defective. However, as discussed in today’s post, this defense can be waived if
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Jan 11, 20216 min read
NO NOTICE + NO APPEARANCE = NO DEFAULT: NOTICE MAY BE NECESSARY BEFORE A DEFAULT CAN BE ENTERED FOR MISSING A COURT APPEARANCE
Like attending school in your underwear, missing a scheduled Court appearance is a recurring nightmare for attorneys. If an appearance is missed, there can be several and severe consequences. Rule 22 NYCRR 202.27 (Defaults) provides: At any scheduled call of a calendar or at any conference, if all parties do not appear and proceed or announce their readiness to proceed immediately or subject to the engagement of counsel, the judge may note the default on the record and ent
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Jan 8, 20213 min read
A New Year, Same Result: Fraud Claim Dismissed as Duplicative of Contract Claim
A “recurring question” courts in New York grapple with is whether the facts alleged in a complaint give rise to sustainable claims for both breach of contract and fraudulent inducement. Cronos Grp. v. XComIP, LLC , 156 A.D.3d 54, 56 (1st Dept. 2017). Readers of this Blog know that a fraud claim, which “ar from the same facts , s identical damages and d not allege a breach of any duty collateral to or independent of the parties’ agreements<,> is subject to dismissal as red
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Jan 6, 20214 min read
Who Decides “Gateway” Issues of Arbitrability? The Second Department Weighs In
When parties to a contract delegate the question of arbitrability to an arbitrator, the courts will enforce the agreement as written. They may not, without more, decide the arbitrability issue. This “is true even if the court thinks that the argument that the arbitration agreement applies to a particular dispute is wholly groundless.” Henry Schein, Inc. v Archer & White Sales, Inc. , _____ U.S. at _____, 139 S.Ct. 524, 529 (2019). Thus, “if a valid agreement exists, and if th
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Jan 4, 202113 min read
CONDITIONAL ORDERS OF DISMISSAL PURSUANT TO CPLR 3216
If a plaintiff fails to prosecute an action dismissal for “want of prosecution” may be obtained pursuant to CPLR 3216 , which provides, in pertinent part: (a) Where a party unreasonably neglects to proceed generally in an action or otherwise delays in the prosecution thereof against any party who may be liable to a separate judgment, or unreasonably fails to serve and file a note of issue, the court, on its own initiative or upon motion, with notice to the parties, may dismis
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Dec 30, 20204 min read
All Things Arbitration – CPLR §§ 7503(b), 7510 and 7511
Arbitration is a preferred means of dispute resolution. In fact, arbitration is the policy under the Federal Arbitration Act (“FAA”) and the Civil Practice Law and Rules (“CPLR”). For this reason, (1) when parties to a contract have clearly and unambiguously agreed to arbitrate their disputes, the courts will enforce that agreement, as they would any other agreement, to give effect to the parties’ intention; (2) the courts will not substitute their judgment for that of the ar
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Dec 28, 20209 min read
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