By: Jeffrey M. Haber One element of a fraud claim under New York law is justifiable reliance. A plaintiff must allege not only that a material misrepresentation was made, but also that the plaintiff actually relied upon that misrepresentation to its detriment. Reliance by a third party is insufficient.

Conclusory allegations, even when bolstered by informal communications, such as text messages, will not substitute for well-pleaded facts showing materially misleading conduct or a specific misrepresentation.

In CJS Indus. Inc. v. Dolce, 2025 N.Y. Slip Op. 05037 (1st Dept. Sept. 23, 2025, plaintiff sued RS Custom Woodworking and its representatives for fraud after winning an arbitration award. Both the motion court and the Appellate Division, First Department, found that plaintiff failed to plead fraud with the required particularity in compliance with CPLR 3016(b).