Fraudulent Inducement Claim Based on Omission Fails for Lack of Duty to Plaintiff

On January 19, 2023, the First Department issued a decision in HOV Servs., Inc. v. ASG Tech. Group, Inc., 2023 NY Slip Op. 00237, holding that a plaintiff could not assert a fraudulent inducement claim based on an omission when the defendant had no duty to the plaintiff, explaining:

Plaintiff’s fraudulent inducement claim and fraud defense to enforcement of the overlapping customer restrictions were properly dismissed. Although issues of fact exist regarding defendant’s knowledge of the existence of overlapping customers, plaintiff’s claim must nonetheless fail because it is premised on an alleged omission and the parties were not in a fiduciary relationship. It is also clear that defendant did not have any contractual duty to provide a customer list. Plaintiff’s reliance on the special facts doctrine is misplaced because plaintiff was equally capable of discovering the existence of overlapping customers.

(Internal quotations and citations omitted).

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