You are here: / / INFORMATION ALLEGED BY THE DEFENDANTS TO HAVE REVEALED FRAUD IN THE SALE...
,

INFORMATION ALLEGED BY THE DEFENDANTS TO HAVE REVEALED FRAUD IN THE SALE OF CREDIT DEFAULT OBLIGATIONS AT A TIME WHICH RENDERED THE CURRENT FRAUDULENT MISREPRESENTATION ACTION TIME-BARRED WAS NOT SUFFICIENT TO WARRANT A DISMISSAL AT THE PLEADING STAGE.

The First Department, in a full-fledged opinion by Justice Mazzarelli, over a two-justice dissent, in a case involving the sale of credit default obligations (CDO’s), determined the motion to dismiss the fraudulent misrepresentation cause of action was properly denied. Defendants argued the plaintiffs had sufficient information to alert them to the fraud at a time which would render the current action time-barred. The First Department determined the information cited by the defendants was insufficient to support dismissal at the pleading stage. [The opinion is fact-specific and too detailed to fairly summarize here]:

Here, it is undisputed that, when plaintiffs commenced the action, six years had passed since plaintiffs made their investments in the Funds. The question, then, is whether plaintiffs discovered, or could with reasonable diligence have discovered, the fraud more than two years before commencement (CPLR 213[8]). * * *

… [W]e make no conclusive finding that plaintiffs were blind to the scheme they accuse defendants of perpetrating. We merely determine, at this early stage of the litigation, that the evidence presented by defendants can be interpreted in a myriad of ways and does not facially clash with plaintiffs’ position that, even having some knowledge that the Funds had an equity component to them, they could not have known before the SEC proceeding the extent to which defendants used plaintiffs’ investment to acquire and control the Portfolio Companies, or otherwise had an obligation, based on that evidence, to further investigate. Thus, Supreme Court properly declined to dismiss the fraudulent misrepresentation complaint on statute of limitations grounds, and the viability of the defense must await a fully developed factual record, at which point it can be either decided as a matter of law on a motion for summary judgment, or at a trial. Norddeutsche Landesbank Girozentrale v Tilton, 2017 NY Slip Op 01482, 1st Dept 2-23-17

 

SECURITIES (INFORMATION ALLEGED BY THE DEFENDANTS TO HAVE REVEALED FRAUD IN THE SALE OF CREDIT DEFAULT OBLIGATIONS AT A TIME WHICH RENDERED THE CURRENT FRAUDULENT MISREPRESENTATION ACTION TIME-BARRED WAS NOT SUFFICIENT TO WARRANT A DISMISSAL AT THE PLEADING STAGE)/FRAUD (SECURITIES, INFORMATION ALLEGED BY THE DEFENDANTS TO HAVE REVEALED FRAUD IN THE SALE OF CREDIT DEFAULT OBLIGATIONS AT A TIME WHICH RENDERED THE CURRENT FRAUDULENT MISREPRESENTATION ACTION TIME-BARRED WAS NOT SUFFICIENT TO WARRANT A DISMISSAL AT THE PLEADING STAGE)/CREDIT DEFAULT OBLIGATIONS (INFORMATION ALLEGED BY THE DEFENDANTS TO HAVE REVEALED FRAUD IN THE SALE OF CREDIT DEFAULT OBLIGATIONS AT A TIME WHICH RENDERED THE CURRENT FRAUDULENT MISREPRESENTATION ACTION TIME-BARRED WAS NOT SUFFICIENT TO WARRANT A DISMISSAL AT THE PLEADING STAGE)

You might also like
COURT DID NOT HAVE THE AUTHORITY TO, SUA SPONTE, VACATE ITS DECISION AND REINSTATE A 2014 JUDGMENT WHERE NO REQUEST THAT COULD FORM THE BASIS OF THAT ACTION WAS MADE IN THE MOTION PAPERS (FIRST DEPT).
THE NYC ADMINISTRATIVE RULES PLACING CERTAIN RESTRICTIONS ON EXPRESSIVE MATTER VENDORS IN CITY PARKS ARE VALID AND ENFORCEABLE (FIRST DEPT).
COMMUNITY GARDEN ASSOCIATION STATED A CAUSE OF ACTION FOR ADVERSE POSSESSION OF A LOT IN THE LOWER EAST SIDE OF MANHATTAN, THE PERIOD OF TIME THE LAND WAS USED BY THE ASSOCIATION BEFORE IT WAS INCORPORATED IN 2012 WAS PROPERLY TACKED ON (FIRST DEPT).
THE NEW YORK CITY LOCAL LAWS REFORMING THE NYC FIGHTING HOMELESSNES AND EVICTION PREVENTION SUPPLEMENT ARE NOT PREEMPTED BY THE NEW YORK STATE SOCIAL SERVICES LAW (FIRST DEPT).
CHILD’S INCOMPLETE TESTIMONY STRICKEN IN A FAMILY COURT ACT 1028 PROCEEDING MAY BE ADMITTED IN A FAMILY COURT ACT 1046 CHILD ABUSE PROCEEDING (FIRST DEPT).
THE SEX OFFENDER LEVEL ADJUDICATION IN NEW YORK COUNTY REQUIRED THE DISMISSAL OF THE SORA PROCEEDING IN BRONX COUNTY WHICH WAS BASED ON THE SAME CONDUCT (FIRST DEPT).
THE PROPERTY OWNERS AND THE SECURITY COMPANY WERE PROPERLY FOUND LIABLE FOR PLAINTIFF’S SEVERE INJURIES CAUSED BY TWELVE-YEAR-OLD BOYS WHO THREW A SHOPPING CART OVER A FOURTH FLOOR RAILING STRIKING PLAINTIFF ON THE GROUND BELOW (FIRST DEPT).
SUPREME COURT PROPERLY REJECTED THE LANDLORD’S CALCULATION OF RENT OVERCHARGES FOR RENT-REGULATED APARTMENTS REMOVED FROM RENT STABILIZATION WHILE THE BUILDING WAS RECEIVING J-51 TAX BENEFITS (FIRST DEPT).

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 © 2025 New York Appellate Digest, Inc.
Site by CurlyHost | Privacy Policy

PLAINTIFFS’ DECEDENT COMMITTED SUICIDE SHORTLY AFTER DEFENDANT PSYCHIATRISTS... INSUFFICIENT EVIDENCE PUBLIC FUNDS WERE USED TO PAY FOR CONSTRUCTION AT THE...