The Elements of Fraud and Misrepresentation in Contracts

What does the plaintiff have to plead to state a claim for fraud or misrepresentation?

The basic elements of a claim for fraud are a representation of fact, the falsity of that representation, knowledge by the party who made it that it was false, justifiable reliance by the Plaintiff and resulting injury. Centro Empresarial Cempresa S.A. v. América Móvil, S.A.B. de C.V., 17 N.Y.3d 269, 276 (2011). Fraud may also be based on a “material omission of fact.” Mandarin Trading Ltd. v. Wildenstein, 16 N.Y.3d 173, 178 (2011).

A claim for negligent misrepresentation requires “the existence of a special or privity-like relationship imposing a duty on the defendant to impart correct information to the plaintiff; that the information was incorrect; and reasonable reliance on the information.” Mandarin Trading Ltd. v. Wildenstein, 16 N.Y.3d 173, 180 (2011).

 

If you have any legal questions or need help with fraud and misrepresentation, please contact Attorney Scott Lanin at (212) 764-7250 x 201 or use the contact form in the right sidebar.