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privilege “fosters the open dialogue between lawyer and client that is deemed essential to effective representation The Court explained that the “dual representation and evidence of a defense strategy shared by defendants

In order for a party to disclaim reliance on extra-contractual representations, an agreement must contain language that makes it clear that the parties are not relying on such representations. Takeaway Gottwald underscores the effect of a merger clause and a no additional representations clause and communications being integrated into the KMI Agreement), the no additional representations clause In that regard, they should specify the representations and matters being merged or integrated into the

exercised “ordinary intelligence” in ascertaining “the truth or the real quality of the subject of the representation It cannot reasonably rely on such representations without making additional inquiry to determine their Such steps include availing oneself of the opportunity to verify the defendant’s representations through and records, and other writings; asking questions; and/or insisting on prophylactic measures, such as representations Under such circumstances, as in KS Trade , the plaintiff has no reason to inquire into the representations

The motion court held that factual disputes about ongoing representation and adverse acts precluded dismissal

Typically, the whistleblower (known as the “relator”) adds a claim under the state analogue to the FCA defendants for violation of the NYFCA (NYSFL § 187 et seq.), alleging that defendants (i) “knowingly present , or cause to be presented a false or fraudulent claim for payment” to a government entity, (ii) knowingly Court rejected defendants’ contention that Relator did not sufficiently allege the falsity of their representations

any funds to HUBL; (3) fraud in the inducement against all of the defendants, because of their false representations insubordination or otherwise satisfied the Agreement’s contractual standard for termination ‘for cause’ present

For example, a plaintiff must allege misrepresentations of present fact, not merely misrepresentations rather, facts must be alleged establishing that the adverse party, at the time of making the promissory representation These allegations included, among others, presenting “projections” that turned out to be “out of line , said the motion court, the complaint did not allege any facts to support the claim that Talpiot’s representations insufficient to the extent they failed to allege that defendants, at the time of making the promissory representation

However, when the truth of the representations at issue are “peculiarly within defendant’s knowledge ,” the plaintiff may rely on the representations “without prosecuting an investigation,” because he/she As discussed below, the Court found that Kainz could not have justifiably relied on any representation alleged to be false because the information that undergirded the representation was publicly available The Court explained that the truth of the representation was available to Kainz had he looked because

misrepresentation of material fact, the party advancing the claim must allege a misrepresentation of present rather, facts must be alleged establishing that the adverse party, at the time of making the promissory representation involving the fraudulent inducement cause of action), the Court held that Plaintiff did not allege a “representation of present fact.” Instead, Plaintiff merely alleged a representation of future intent. Id.

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misrepresentation of material fact, the party advancing the claim must allege a misrepresentation of present plaintiff must allege facts establishing that the adverse party, at the time of making the promissory representation what will be done in the future,” which gives only rise to a breach of contract claim, and a false “representation of present fact,” which gives rise to an independent claim of fraudulent inducement.

The Court explained that “ vidence was presented that plaintiff, which had day-to-day responsibility The Court further explained that “ vidence was also presented that, although plaintiff had some sense maintained that defendants repeatedly “reaffirmed” that commitment while internally acknowledging their representations