Practice point: All of the elements of a fraud claim must be supported by factual
allegations containing the details constituting the wrong in order to
satisfy the pleading requirements of CPLR 3016(b). The purpose of this pleading requirement is to inform a defendant of the complained-of incidents.
Student note: It may be virtually impossible to state in
detail the circumstances constituting a fraud where those circumstances
are peculiarly within the knowledge of an adverse party. Under such circumstances, the heightened pleading
requirements of CPLR 3016(b) may be met when the material facts alleged
in the complaint are sufficient to permit a reasonable
inference of the alleged conduct, including the adverse party's
knowledge of, or participation in, the fraudulent scheme.
Case: House of Spices (India), Inc. v. SMJ Servs., Inc., NY Slip Op 01236(2d Dept. 2013).
Here is the decision.
Tomorrow's issue: Suing after termination.
