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Fraud Claim Based on Falsely Notarized Document Dismissed: Saleh Holdings Group, Inc. v Chernov

Posted in CPLR 3016, Fraud, Guaranty, Industry: financial services, Justice Fried, Bernard J., Motion to Dismiss, New York

In a January 31, 2011 decision by Justice Fried, the court dismissed the plaintiff’s claims for fraud and aiding and abetting fraud which were based on allegations that the defendant notarized a signature on a guaranty knowing that the purported signatory did not sign the document because: (1) the plaintiff failed to satisfy the pleading requirements of CPLR § 3016; (2) the defendant’s notarization was not the proximate cause of the plaintiff’s damages where 11 years elapsed between when the guaranty was notarized, during which the plaintiff orally modified terms of the guaranty; and (3) the damages alleged were not out-of-pocket losses recoverable on a fraud claim and admittedly caused by other factors.

Saleh Holdings Group, Inc. v Chernov, Sup Ct NY County, January 31, 2011, Fried, J, Index No. 650177/10