You are here: / / Issues to Be Determined in Inquest After Default in Contract Action Explained;...
, ,

Issues to Be Determined in Inquest After Default in Contract Action Explained; Viability of Fraud Cause of Action in Action Based on Contract Explained

In a contract action, the Third Department noted that: (1) a limitation of liability clause in a contract can be raised by the defaulting party after a default in the inquest on damages; (2) the court can determine whether the defaulting party stated valid causes of action; and (3) allegations of deceptive practices aimed at the general public state a cause of action under General Business Law 349.  In explaining why the fraud cause of action was valid in this contract-based case, the Third Department wrote:

In order to recover on the third cause of action for fraud, the defrauded party must allege a misrepresentation or omission of a material fact known to be false and made with the intent to deceive, as well as justifiable reliance and damages … .  While it is the general rule that “[a] separate cause of action seeking damages for fraud cannot stand when the only fraud alleged relates to a breach of contract” …, defendants’ allegations of fraud do not concern any express terms of the contract or third-party defendants’ failure to perform those term ….  Rather, defendants allege that third-party defendants fraudulently induced them into entering the contract by falsely representing that they were skilled, competent and experienced in providing construction management services.  Those allegations are not redundant of the breach of contract cause of action, which claims that third-party defendants failed to perform the terms of the contract … .  Defendants also alleged that they relied on the representations …, and the allegations permit us to infer that the reliance was justified.  Nor is there anything in the complaint or contract that would suggest that their reliance was unjustified … .  84 Lumber Co LP v Barringer…, 516235, 3rd Dept 10-17-13

 

You might also like
UNDER THE PUBLIC AUTHORITIES LAW, LAID OFF SEASONAL EMPLOYEES WHO HAD BEEN TRANSFERRED FROM THE DEPARTMENT OF ENVIRONMENTAL CONSERVATION TO A PUBLIC BENEFIT CORPORATION WERE NOT ENTITLED TO REMAIN IN THE COLLECTIVE BARGAINING UNIT OF THE DEPARTMENT OF ENVIRONMENTAL PROTECTION WHEN REHIRED BY THE PUBLIC BENEFIT CORPORATION (THIRD DEPT).
PLANNING BOARD HAD THE AUTHORITY TO RECONSIDER A SUBDIVISION AND SITE PLAN APPROVAL BASED UPON NEW INFORMATION, DESPITE THE FACT THE APPROVAL HAD BEEN RESCINDED (THIRD DEPT).
PETITIONER WAS MISINFORMED ABOUT WHETHER HE COULD REQUEST WITNESSES, AND, IF THEY REFUSED TO TESTIFY, WHETHER PETITIONER WAS ENTITLED TO A REFUSAL FORM OR EXPLANATION, NEW HEARING ORDERED (THIRD DEPT).
AFTER A JUROR CAME FORWARD DURING DELIBERATIONS TO SAY SHE THOUGHT THE DEFENDANT HAD FOLLOWED HER IN HIS CAR DURING THE TRIAL AND OTHER JURORS EXPRESSED SAFETY CONCERNS WITH RESPECT TO TRIAL SPECTATORS, THE JUDGE INTERVIEWED EACH JUROR AND PROPERLY DENIED DEFENDANT’S MOTION FOR A MISTRIAL BASED ON A GROSSLY-UNQUALIFIED-JUROR ARGUMENT; TWO-JUSTICE DISSENT (THIRD DEPT).
REPORT OF INADEQUATE GUARDIANSHIP MAINTAINED BY THE CENTRAL REGISTER OF CHILD ABUSE AND MALTREATMENT SHOULD HAVE BEEN AMENDED TO BE UNFOUNDED AND EXPUNGED.
Prisoner Must Object at Hearing to Obtain Judicial Review
Election Poll Worker Not an Employee—Not Entitled to Unemployment Insurance Benefits
Because the Statute Relied Upon by the State Police to Deny a FOIL Request Did Not Pertain to the Sought Documents, the Request Should Have Been Granted/Court Cannot Substitute Another Ground for Denial

Categories

Sign Up for the Mailing List to Be Notified When the Site Is Updated.

  • This field is for validation purposes and should be left unchanged.

Copyright © 2026 New York Appellate Digest, Inc.
Site by CurlyHost | Privacy Policy

Criteria for Unconstitutional Impairment of Contract Rights Explained in Context... Plaintiff Cannot Proceed With Case Taking a Position Different from That Taken...