Friday, February 5, 2016

Dismissal of a fraud claim.

Practice point:  Pursuant to CPLR 3016(b), where a cause of action is based upon fraud or aiding and abetting fraud, the circumstances constituting the wrong must be stated in detail.  The Appellate Division affirmed dismissal of the claim here, as the causes of action alleging fraud contained only bare and conclusory allegations, without any supporting detail.  Absent that detail, they failed to satisfy the statutory requirements.

Student note:   A cause of action to recover damages for fraud requires allegations of: (1) a false representation of fact, (2) knowledge of the falsity, (3) intent to induce reliance, (4) justifiable reliance, and (5) damages.

Case:  Doukas v. Ballard, NY Slip Op 00474 (2d Dept. 2016)

Here is the decision.

Monday's issue:  A lessee/sublessor's liability.