Commercial Division Blog: Current Developments in the Commercial Divisions of the New York State Courts

On April 25, 2024, Justice Andrew Borrok upheld a claim for negligent misrepresentation brought against an attorney who authored a mistaken opinion letter in connection with the purchase of an interest in a real estate company. In iintoo Cortland Bronx New York, L.P., v. Daniel Wenger, et al., Index No. 151947/2023, the defendant delivered a legal opinion letter to the purchaser, representing that, based on due diligence that he had completed “to [his] satisfaction,” the seller had the authority to execute the transaction and grant the investment interest. After closing, however, the party learned that opinions expressed in the letter were flawed and the seller had restructured in a way that potentially rendered the investment void. The defendant pointed out that his opinion was flawed only because certain documents had been concealed from him at the time he authored the letter. He therefore moved to dismiss the claim by arguing the plaintiff had failed to plead the requisite intent. The Court rejected this argument, explaining: Read More