April 1, 2015

The justifiable reliance element of a fraud claim.

Practice point:  The Appellate Division determined that the plaintiff failed to establish the element of justifiable reliance, noting that where the plaintiff has available the means of knowing, by the exercise of ordinary intelligence, the truth or the real quality of the subject of the representation at issue, he must make use of those means, or he will not be heard to complain that he was induced to enter into the transaction by misrepresentations.

Student note:  A viable fraud claim requires a showing of a misrepresentation or omission of material fact which the defendant knew was false; that the misrepresentation was made to induce the plaintiff's reliance; the plaintiff's justifiable reliance on the misrepresentation or material omission; and a resulting injury.

Case:  Cervera v. Bressler, NY Slip Op 02441 (2d Dept. 2015)

Here is the decision.

Tomorrow's issue:  Gravity and Labor Law § 240(1).