Practice point: Plaintiff failed to state a cause of action for aiding and abetting
fraud against defendant law firm and the individual defendant,
plaintiff's former attorney. The alleged conduct, namely, defendants' failure to
disclose a voting agreement entered into between non-parties at a time
when defendants did not represent plaintiff and to subsequently
highlight the voting agreement's existence, does not constitute substantial assistance in the
commission of the alleged underlying fraud.
Student note: Likewise, the claim that defendants provided routine legal
services to the alleged fraudsters is insufficient to establish
a claim for aiding and abetting fraud.
Case: Learning Annex, L.P. v. Blank Rome, LLP, NY Slip Op 03921 (1st Dept. 2013).
Here is the decision.
Tomorrow's issue: Assumption of the risk.
