A Promise Made Without Intent to Perform Can Support a Claim for Fraud

On October 3, 2024, the First Department issued a decision in Haart v. Scaglia, 2024 NY Slip Op. 04812, holding that a promise made without the intent to perform can support a claim for fraud, explaining:

Under certain circumstances, a promise made without the intent to perform can support a claim for fraudulent misrepresentation. Here, when plaintiff agreed to become EWG’s CEO, Scaglia’s promise to give her 50% of FHI was a promise about the future. However, plaintiff does not merely allege that she was induced to become CEO; she also alleges that she was induced to remain CEO without a salary or a contract for a fixed term because Scaglia, Feinman, and DDK kept reassuring her that she owned 50% of FHI — which, at that point, would be a misrepresentation of an existing fact.

(Internal quotations and citations omitted).

Stay Informed

Get email updates anytime we publish to one or all of our blogs.

Stay informed!
Sign up for email alerts and notifications here.
Read more about our Complex Commercial Litigation practice.