Practice point: The Appellate Division affirmed dismissal of the fraud claim, as plaintiff did not satisfy the heightened pleading standard under CPLR § 3016(b). Plaintiff failed to identify any allegedly false representations that defendant made with the intent to induce plaintiff's investment.
Student note: The Appellate Division found that the fraudulent inducement claim duplicates the breach of
contract claim because plaintiff has not alleged any representation that
is collateral to the contract. A fraud-based claim is duplicative of breach of a
contract claim when the only fraud alleged is that the defendant was not
sincere when it promised to perform under the contract.
Case: MMCT, LLC v. JTR Coll. Point, LLC, NY Slip Op 08103 (1st Dept. 2014)
Here is the decision.
Tomorrow's issue: Reassignment to another Part and summary judgment.
