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New York Commercial Division Case Compendium A Searchable Database of Court Decisions Issued by New York’s Commercial Division

Category Archives: Fraud

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Statute of Frauds is Not a Bar to Russian Oligarch’s Claims Against Fellow Russian Billionaire Investors Over Breach of Joint Venture Agreement

Posted in Arbitration, Breach of Contract, Breach of Fiduciary Duty, Fraud, Motion to Dismiss, New York, Preliminary Injunction, Scarpulla, Saliann, Statute of Limitations

In a December 2, 2015 Commercial Division decision by Justice Scarpulla, the court consolidated and decided the defendants’ motion to dismiss the amended complaint and the plaintiff’s motion seeking a preliminary injunction to restrain the defendants from pursuing arbitration in London and from commencing any other foreign proceeding.

Accountant Providing Non-Auditing Tax Services Still Has Professional and Fiduciary Duties to Inform Taxpayer of Questionable Financial Practices

Posted in Accounting, Banking, Breach of Contract, Breach of Fiduciary Duty, Demarest, Carolyn E., Fraud, Kings, Malpractice, Motion to Dismiss, Negligence

In a July 21, 2015, Kings County Commercial Division decision by Justice Demarest, the court denied in part and granted in part defendants’ motion to dismiss plaintiff’s amended complaint under CPLR 3211 (a) (1) and (7).

Attempts to Avoid Creditors Thwarted When Court Finds Evidence of Intent to Defraud Creditors, Granting Plaintiff Summary Judgment: All County Paving Corp. v Darren Constr. Inc.

Posted in Attorneys' Fees, Construction, Emerson, Elizabeth, Fraud, Suffolk, Summary Judgment

In an August 4, 2015 Commercial Division decision by Justice Elizabeth Emerson, the court denied defendants’ motion for summary judgment to dismiss the complaint, and granted plaintiff’s cross-motion for summary judgment as to one of the defendants.

Class Allowed to Prosecute Proceeding for Turnover of Water Lily Proceeds in Absence of Necessary Party

Posted in Class Action, Conversion, Fraud, Motion to Dismiss, New York, Personal Jurisdiction, Ramos, Charles E., Unjust Enrichment

In an April 7, 2015, New York County Commercial Division decision by Justice Ramos, the court denied in substantial part respondents’ motion under CPLR 1001, as well as 3211 (a) (4) and (7), to dismiss petitioners’ special proceeding for failure to join a necessary party; because of another action pending; and for failure to state… Continue Reading

Plaintiff Escapes Three-Year Limitations Period for Accounting Malpractice by Alleging Intentional Misconduct in Support of Claims for Breach of Contract and Fraud

Posted in Accounting, Albany, Breach of Contract, Breach of Fiduciary Duty, Fraud, Malpractice, Motion to Dismiss, Platkin, Richard, Statute of Limitations, Uncategorized, Unjust Enrichment

In a March 6, 2015, Albany County Commercial Division decision by Justice Platkin, the court granted in part and denied in part defendant-accounting firm’s (the “Firm’s”) motion to dismiss plaintiff-New York Worker’s Compensation Board’s (the “Board’s”) action alleging inadequate and improper accounting services.

Court Denied Motion to Dismiss Based on Champerty Statute Where Assignee’s Intention to Bring Litigation By Proxy Was Unclear

Posted in Bransten, Eileen, Fraud, Motion to Dismiss, New York, Pharmaceutical, Shareholder Dispute, Unjust Enrichment

In a March 16, 2015, Commercial Division decision by Justice Bransten, the court denied defendants’ motion to dismiss the complaint in its entirety. This action was brought by Shareholder Representative Services, Inc. (“SRS”) on its own behalf, and on behalf of the former shareholders of Oriel Therapeutics, Inc. (“Oriel”), against Sandoz Inc., its affiliates and… Continue Reading

Use of Interactive Website Accessible in New York Not Considered Doing or Transacting Business in New York for Purposes of Personal Jurisdiction

Posted in Fraud, Motion to Dismiss, Personal Jurisdiction, Pines, Emily, Real estate, Suffolk

In a March 27, 2015, Suffolk County Commercial Division decision by Justice Pines, the court granted defendant non-domiciliary’s motion to dismiss plaintiff’s complaint for lack of personal jurisdiction. Plaintiff brought fraud and negligent misrepresentation claims against a Florida professional association in connection with the sale of real estate in New York. Defendant moved to dismiss… Continue Reading

City Barred from Seeking Medicaid Reimbursement from Trustee Where Claims Should Have Been Raised in Prior Accounting Proceeding

Posted in Breach of Contract, Breach of Fiduciary Duty, CPLR 2221, Fraud, Healthcare, Motion to Dismiss, New York, Ramos, Charles E.

In a March 27, 2015, Commercial Division decision by Justice Ramos, the court denied a motion by plaintiff NYC Dept. of Social Services to reargue defendant-trustee’s motion to dismiss for res judicata purposes. The case arose out of an underlying medical malpractice action involving the treatment of defendant’s son at New York Presbyterian Hospital. The… Continue Reading

Champerty Defense in Action Against Morgan Stanley Arising Out of Purchase of Mortgage Backed Securities Rejected

Posted in Banking, Fraud, Friedman, JSC, Marcy S., Motion to Dismiss, New York, Statute of Limitations

In an October 28, 2014 Commercial Division decision by Justice Friedman, the court granted in part, and denied in part, Morgan Stanley’s motion to dismiss a fraud action.  The action was brought by plaintiff IKB International S.A. in Liquidation, alleging fraud on the part of Morgan Stanley in connection with the purchase of residential mortgage… Continue Reading

Dental Office Purchaser Fails to Establish Claims of Fraud and Breach against Seller on Summary Judgment

Posted in Fraud, Healthcare, Promissory Note, Rescission, Suffolk, Summary Judgment, Whelan, Thomas

In a September 26, 2014 Commercial Division decision by Justice Whelan, the court granted in part a motion for summary judgment by the defendants, sellers of a dental practice to Plaintiff, a dental professional corporation.  Plaintiff purchased a dental practice from the defendants and later argued that defendants breached certain of their obligations under the… Continue Reading

Art Consultant’s Motion to Dismiss Granted in Suit brought by Former Tennis Partner Turned Client

Posted in Breach of Contract, Breach of Fiduciary Duty, Demarest, Carolyn E., Fraud, Misrepresentation, Motion to Dismiss, Negligence, Queens

In a November 7, 2014 Commercial Division decision by Justice Demarest, the court granted the defendants’ motion to dismiss the complaint in its entirety. Saul, an attorney and business owner, met the individual defendant, Cahan, when the two were paired together as tennis partners. Through their tennis relationship, Cahan allegedly convinced Saul that he was… Continue Reading

Audi Dealership’s Claims under New York Dealer Act Fail Against Audi, Rival Dealership

Posted in Breach of Contract, Breach of Fiduciary Duty, DeStefano, Vito M., Estoppel, Fraud, Motion to Dismiss, Nassau, Unjust Enrichment

In an November 6, 2014 Commercial Division decision by Justice DeStefano, the court granted the majority of the motions to dismiss of Audi of America, Inc. (“Audi”), Stanley Weinstock, and Beiner Auto Group (with Weinstock, the “Beiner Defendants”). 

Court Allows Majority of Claims Arising from Failure to Consummate $112 Million Real Estate Transaction to Continue

Posted in Arbitration, Bransten, Eileen, Breach of Contract, Breach of Fiduciary Duty, Conversion, CPLR 3211, Documentary Evidence, Estoppel, Fraud, Good faith and fair dealing, New York, Real estate

In a September 29, 2014 Commercial Division decision by Justice Bransten, the court allowed the majority of the plaintiff’s claims to proceed, finding them not barred by the documentary evidence submitted by the defendants.  The litigation arose from a significant real estate transaction, to purchase a tenants in common (“TIC”) interest in over 1,200,000 square… Continue Reading

Pension Fund Auditor May Have Had Duty to Investigate and Verify Fund’s Investments in Madoff-Related Entities

Posted in Accounting, Ambiguity, Breach of Contract, Breach of Fiduciary Duty, Erie, Estoppel, Fraud, Malpractice, Misrepresentation, Summary Judgment, Walker, Timothy J.

In an August 19, 2014, Erie County Commercial Division decision by Justice Walker, the court denied in part and granted in part defendant-accounting firm’s motion for summary judgment dismissing plaintiff-pension fund’s action for audit deficiencies and other misconduct.

Justice Demarest Dismisses Son’s Suit Against Mother for Alleged Misappropriation of Corporate Assets

Posted in Breach of Contract, Breach of Fiduciary Duty, Conversion, CPLR 3211, Demarest, Carolyn E., Derivative Actions, Fraud, Kings, Motion to Dismiss, Shareholder Dispute, Unjust Enrichment

In an October 14, 2014 Commercial Division decision by Justice Demarest, the court granted the defendant’s motion to dismiss the complaint. The action was commenced by the corporate plaintiff, Koryeo Intl. Corp. (“Koryeo”), and the individual plaintiff, Steve Hong (“Steve”), Koryeo’s current sole shareholder, officer and director against Steve’s mother, Kyung Ja Hong (“Kyung”), the… Continue Reading

Singapore Financial Company’s Suit Against Morgan Stanley Permitted to Proceed in New York Forum, Claims Over Failed Credit-Linked Notes Survive Dismissal

Posted in Bransten, Eileen, Breach of Contract, CPLR 3211, Documentary Evidence, Financial services, Fraud, Misrepresentation, Motion to Dismiss, New York

In a September 12, 2014 Commercial Division decision by Justice Bransten, the court granted in part the motion to dismiss of Morgan Stanley, pursuant to CPLR 327, CPLR 3211(a)(1), and CPLR 3016(b).  Plaintiff HLF, a Singapore financial company, asserted six causes of action based on allegations that Morgan Stanley fraudulently induced it to enter into… Continue Reading

Citigroup’s Motion to Dismiss RMBS-related Claims Held in Abeyance Pending Hearing on Foreign Statute of Limitations

Posted in CPLR 3211, Financial services, Fraud, Misrepresentation, Motion to Dismiss, Negligence, New York, Ramos, Charles E., Statute of Limitations

In a September 8, 2014 Commercial Division decision by Justice Ramos, the court held in abeyance the defendants’ motion to dismiss pending hearing. The case arose from yet another real estate mortgage backed securities (RMBS) transaction gone wrong, in this instance between the plaintiff Deutsche as the purchaser of $362 million of mortgage loan pass… Continue Reading

Partial Summary Judgment Granted, Dismissing 5 of 9 Investor Fraud Claims against MotherRock

Posted in Breach of Fiduciary Duty, Financial services, Fraud, Misrepresentation, Negligence, New York, Ramos, Charles E., Rescission, Summary Judgment

In a July 7, 2014 Commercial Division decision by Justice Ramos, the court granted in part and denied in part the defendants’ motion for summary judgment as to each of the plaintiffs’ causes of action. The plaintiffs sought to recover damages from losses allegedly suffered from their investments in the failed funds of the defendants,… Continue Reading

DHL’s Fraudulent Inducement Counterclaim against Worldwide Express Operations, LLC Franchisees Dismissed for Failure to State a Cause of Action

Posted in CPLR 3211, Failure to State a Claim, Fraud, Misrepresentation, Motion to Compel Discovery, Motion to Dismiss, New York, Ramos, Charles E., Transportation

In a July 1, 2014 Commercial Division decision by Justice Ramos, the court granted the plaintiffs’ motion to dismiss the defendant DHL’s counterclaim for fraudulent inducement. The plaintiffs, all franchisees of Worldwide Express Operations, LLC (“Worldwide”), a former reseller of DHL’s shipping services, argued that DHL failed to state a cause of action. The plaintiffs… Continue Reading