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Capricorn Investors III v. CoolBrands International, Inc.

Appellate Division of the Supreme Court of New York, First Department
Oct 1, 2009
66 A.D.3d 409 (N.Y. App. Div. 2009)

Summary

holding that party cannot reasonably rely on promise that conflicts with written agreement's express terms

Summary of this case from Steinbeck v. Steinbeck Heritage Found

Opinion

No. 1094.

October 1, 2009.

Order, Supreme Court, New York County (Bernard J. Fried, J.), entered July 21, 2008, which, to the extent appealed from, granted defendants' motion to dismiss the claims alleging fraudulent inducement, negligent misrepresentation and promissory estoppel, unanimously affirmed, with costs.

Skadden, Arps, Slate, Meagher Flom, LLP, New York, (Joseph A. Matteo of counsel), for appellant.

Steptoe Johnson, LLP, New York (Michael C. Miller of counsel), for respondents.

Before: Tom, J.P., Andrias, DeGrasse and Freedman, JJ.


In support of its claim of fraudulent inducement, plaintiff alleges that defendants did not keep their oral promises to consolidate the operations of their Arkansas plant and plaintiffs Texas plant and that defendants never intended to keep those promises. However, as plaintiff alleges no facts that would show that defendants never intended to keep their promises, the court correctly dismissed the claim ( see Abelman v Shoratlantic Dev. Co., 153 AD2d 821, 822). Further, neither the limited partnership agreement nor the related documents provide for the plant consolidation, and all the documents disclaim reliance on oral representations ( see Citibank v Plapinger, 66 NY2d 90, 95; Emfore Corp. v Blimpie Assoc., Ltd., 51 AD3d 434).

The court correctly dismissed the claim of negligent misrepresentation because it is predicated upon promises of future conduct, rather than statements as to "existing material fact" ( Margrove Inc. v Lincoln First Bank of Rochester, 54 AD2d 1105, 1107, appeal dismissed 40 NY2d 1092). The promissory estoppel claim was properly dismissed because it was flatly contradicted by the parties' written agreement which covered the same subject matter and expressly superseded all other prior agreements and understandings, written and oral ( cf. Prestige Foods v Whale Sec. Co., 243 AD2d 281, 281-282).

We have considered plaintiff's remaining arguments and find them unavailing.


Summaries of

Capricorn Investors III v. CoolBrands International, Inc.

Appellate Division of the Supreme Court of New York, First Department
Oct 1, 2009
66 A.D.3d 409 (N.Y. App. Div. 2009)

holding that party cannot reasonably rely on promise that conflicts with written agreement's express terms

Summary of this case from Steinbeck v. Steinbeck Heritage Found

stating that, in conducting an alter ego analysis, an LLC's limitation of liability should not be pierced for the lack of its own officers or staff or the failure to abide corporate formalities not required by the operating agreement

Summary of this case from World Trade Ctrs. Ass'n, Inc. v. Port Auth. of N.Y. & N.J.

explaining that the absence of “officers or directors” and “board or executive committee meetings,” although unusual for many corporate forms, is “not persuasive veil piercing factor for an LLC, where plaintiff does not argue that management was required to be centralized in a board”

Summary of this case from American Federated Title Corp. v. GFI Management Services, Inc.
Case details for

Capricorn Investors III v. CoolBrands International, Inc.

Case Details

Full title:CAPRICORN INVESTORS III, L.P., Appellant, v. COOLBRANDS INTERNATIONAL…

Court:Appellate Division of the Supreme Court of New York, First Department

Date published: Oct 1, 2009

Citations

66 A.D.3d 409 (N.Y. App. Div. 2009)
2009 N.Y. Slip Op. 6771
886 N.Y.S.2d 158

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