Fraud Claim Dismissed as Duplicative of Contract Claim

On August 24, 2020, Justice Masley of the New York County Commercial Division issued a decision in 5 E. 59th Realty Holding Co., LLC v. Leahey, 2020 NY Slip Op. 32751(U), dismissing a fraud claim as duplicative of a contract claim, explaining:

Plaintiff's fraud claim must be dismissed as duplicative of the contract claim against MIP. Evidence that the claims are duplicative includes identical damages. That MIP is excluded from the fraud claim is not dispositive. Clearly, this issue of whether other brokers were involved in the transaction was contemplated and addressed in the contract. As to aiding and abetting fraud against Leahey Renatus, Lincoln, and MIP, without a fraud claim this claim must be dismissed as well.

(Internal citations omitted).

Commercial litigation frequently involves fraud-based claims. Such claims have special pleading requirements or rules, including the rule discussed here that a fraud claim cannot seek the same damages as a claim for breach of contract. Contact Schlam Stone & Dolan partner John Lundin at jlundin@schlamstone.com if you or a client think you have been defrauded, or if someone has accused you or a client of defrauding them.