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Raytheon Co. v. AES Red Oak, LLC

Appellate Division of the Supreme Court of New York, First Department
Feb 27, 2007
37 A.D.3d 364 (N.Y. App. Div. 2007)

Summary

affirming dismissal of claims of fraudulent inducement to enter a settlement agreement

Summary of this case from Cantu v. Flanigan

Opinion

February 27, 2007.

Order, Supreme Court, New York County (Helen E. Freedman, J.), entered January 9, 2006, which, to the extent appealed from, granted plaintiff partial summary judgment dismissing the fourth and fifth counterclaims in the amended answer, unanimously affirmed, with costs.

Before: Sullivan, J.P., Williams, Gonzalez, Sweeny and Kavanagh, JJ.


In this action for breach of a construction contract in which defendant counterclaims for breach of a settlement agreement and its fraudulent inducement, the fraud counterclaims were properly dismissed on the ground that the required elements of a false statement and justifiable reliance ( see Lama Holding Co. v Smith Barney, 88 NY2d 413, 421) were both clearly contradicted by documentary evidence. The very mechanical problem whose resolution defendant claims was misrepresented was specifically exempted from the releases and was included on a punch list. Plaintiff's July 24, 2002 letter containing the alleged written misrepresentation stated there would be further testing, indicating that the asserted clearance by the supplier was only tentative. Moreover, the allegation of an oral misrepresentation did not particularize when or by whom it had been made (CPLR 3016 [b]). In addition, we agree that the fraud claims were not collateral or extraneous to the alleged breach of contract ( see Coppola v Applied Elec. Corp., 288 AD2d 41).

We have considered defendant's other contentions, including that summary judgment was premature, and find them unavailing.


Summaries of

Raytheon Co. v. AES Red Oak, LLC

Appellate Division of the Supreme Court of New York, First Department
Feb 27, 2007
37 A.D.3d 364 (N.Y. App. Div. 2007)

affirming dismissal of claims of fraudulent inducement to enter a settlement agreement

Summary of this case from Cantu v. Flanigan

affirming dismissal of fraud claims on summary judgment because "the fraud claims were not collateral or extraneous to the alleged breach of contract"

Summary of this case from 30-32 W. 31ST LLC v. Heena Hotel LLC
Case details for

Raytheon Co. v. AES Red Oak, LLC

Case Details

Full title:RAYTHEON COMPANY, Respondent, v. AES RED OAK, LLC, Appellant

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

Date published: Feb 27, 2007

Citations

37 A.D.3d 364 (N.Y. App. Div. 2007)
831 N.Y.S.2d 54

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