Opinion
2013-04-4
George KARFUNKEL, Plaintiff–Appellant–Respondent, v. Philip S. SASSOWER, Defendant–Respondent–Appellant.
Kane Kessler, P.C., New York (Jeffrey H. Daichman of counsel), for appellant-respondent. Pillsbury Winthrop Shaw Pittman LLP, New York (Eric Fishman of counsel), for respondent-appellant.
Kane Kessler, P.C., New York (Jeffrey H. Daichman of counsel), for appellant-respondent. Pillsbury Winthrop Shaw Pittman LLP, New York (Eric Fishman of counsel), for respondent-appellant.
TOM, J.P., ANDRIAS, SAXE, ABDUS–SALAAM, GISCHE, JJ.
Judgment, Supreme Court, New York County (O. Peter Sherwood, J.), entered September 27, 2012, dismissing the complaint, and bringing up for review an order, same court and Justice, entered September 13, 2012, which granted defendant's motion for summary judgment, unanimously affirmed, with costs.
In this action seeking damages for investment fraud, plaintiff was on notice that the transaction orally agreed to would not be structured as discussed based on e-mails and a draft agreement provided to him. Despite being on notice, plaintiff failed to inquire about the specifics of the transaction or to conduct due diligence. This failure precludes his claim of justifiable reliance on defendant's alleged oral representations as a matter of law ( see Centro Empresarial Cempresa S.A. v. América Móvil, S.A.S. de C.V., 17 N.Y.3d 269, 279, 929 N.Y.S.2d 3, 952 N.E.2d 995 [2011];HSH Nordbank AG v. UBS AG, 95 A.D.3d 185, 194–195, 941 N.Y.S.2d 59 [1st Dept. 2012] ). In view of the foregoing, we need not address the contentions regarding proof of scienter or defendant's cross appeal.