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Fraud Notes: Scienter, Predictions, Promises of Future Performance, Loss Causation, and the Duty to Disclose
By: Jeffrey M. Haber “The elements of a cause of action for fraud require a material misrepresentation of a fact, knowledge of its falsity, an intent to induce reliance, justifiable reliance by plaintiff and damages. A claim rooted in fraud must be pleaded with the requisite particularity under CPLR 3016(b).” 1 The failure to satisfy each element will result in dismissal of the claim. When a claim for fraud is predicated on a concealment or omission, “there must first be pr
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Dec 12, 202210 min read
First Department Finds Mechanic’s Lien is Willfully Exaggerated Under the Lien Law
By Jonathan H. Freiberger Mechanic’s liens are powerful tools that can be used by contractors, laborers and materialmen, among others, to assist in getting paid for work performed in improving real property. Indeed: The object and purpose of mechanics’ lien law was to protect a person who, with the consent of the of the owner of real property, enhanced its value by furnishing materials or performing labor in its improvement, by giving him an interest therein to the extent o
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Dec 12, 20224 min read
Motion to Compel Arbitration Denied Where Party to Agreement Had No Authority to Sign Agreement
By: Jeffrey M. Haber We have noted previously that the “policy of to encourage arbitration.” 1 For this reason, “ ny doubts as to whether an issue is arbitrable will be resolved in favor of arbitration.” 2 When a party wishes to compel arbitration, that party must establish “the existence of a valid agreement to arbitrate”. 3 This means that, among other things, all parties to the agreement have the power and authority to enter into the agreement. In Wolf v. Hollis Operat
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Dec 8, 20223 min read
We’ve Moved: Same Building – New Suite
Freiberger Haber LLP (the “Firm”) is pleased to announce that, effective December 1, 2022, it has moved to larger space in the same building. Our new suite number is shown in the address below: 425 Broadhollow Road Suite 416 Melville, N.Y. 11747 The Firm’s telephone and fax numbers will remain the same. “We are excited to relocate to our new office,” commented Jeffrey M. Haber, co-founder of the Firm. “We believe that, as the Firm continues to grow, this move will better acc
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Dec 6, 20221 min read
The Importance of Sharing Profits and Losses When Claiming Breach of an Oral Partnership and Pleading Fraud with Particularity
By: Jeffrey M. Haber A partnership is an association of two or more persons to carry on as co-owners of a business for profit. 1 The formation of a partnership requires a shared purpose and knowing mutual assent by all parties to the partnership. Indeed, “ o person can become a member of a partnership without the consent of all the partners.” 2 When there is no written partnership agreement between the parties, as was the case in Velez v. Mitchell , 2022 N.Y. Slip Op. 06877
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Dec 5, 20228 min read
First Department Finds that Loss of a Personal Journal Results in Adverse Inference Charge Due to Spoliation of Evidence
By Jonathan H. Freiberger This Blog has previously discussed the discovery process and its relationship to the spoliation of evidence. [ See, e.g., < here =">here</a>"> , < here =">here</a>"> , < here =">here</a>"> and < here =">here</a>"> .] Briefly stated, and as summarized from prior articles, in order for litigants to fully prosecute and defend lawsuits, the CPLR permits “full disclosure of all matter material and necessary in the prosecution or defense of an action, re
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Dec 2, 20223 min read
Defendants’ Inconsistent Positions Suffice to Satisfy Justifiable Reliance Element of Fraud Claim
By: Jeffrey M. Haber One of the elements of a fraud claim that plaintiffs have difficulty satisfying is justifiable reliance. For this reason, the justifiable reliance element is most often cited by defendants to secure dismissal of the claim against them. Justifiable reliance is considered by the courts to be one of the more “nettlesome” elements of a fraud claim. 1 Whether a plaintiff justifiably relied on a misrepresentation or omission is a fact-intensive inquiry. 2 As
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Nov 30, 20226 min read
Oral Agreements and Contract Formation
By: Jeffrey M. Haber It should go without saying that a plaintiff claiming breach of contract should demonstrate that the parties formed a contract that has been breached. In fact, as discussed below, contract formation is the first element of a breach of contract claim. Typically, when there is a written agreement, issues of contract formation do not arise. Instead, the issue often arises in the context of an oral agreement, the exchange of emails, letters of intent, and te
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Nov 28, 20226 min read
Reliance on Counsel Found to Waive Attorney-Client Privilege
By: Jeffrey M. Haber “The attorney-client privilege shields from disclosure any confidential communications between an attorney and his or her client made for the purpose of obtaining or facilitating legal advice in the course of a professional relationship.” 1 The privilege “fosters the open dialogue between lawyer and client that is deemed essential to effective representation.” 2 “It exists to ensure that one seeking legal advice will be able to confide fully and freely
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Nov 23, 20226 min read
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