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.

In today’s article, we examine the interplay between releases, anti-reliance clauses, and the special facts doctrine under New York law, using the Appellate Division, First Department’s decision in Leinhardt v. Socure, Inc., 2026 N.Y. Slip Op. 03881 (1st Dept. June 18, 2026), as a focal point. The case addresses a recurring tension in fraud litigation: whether a party who later claims to have been misled can overcome the barriers imposed by a broad release and explicit discla