A Misleading Partial Disclosure can be Actionable as Fraud

On November 23, 2021, the First Department issued a decision in DirectTV, LLC v. Nexstar Broadcasting, Inc., 2021 NY Slip Op. 06539, holding that a fraud claim can be based on a misleading partial disclosure, explaining:

The fraud claim is not duplicative of the contract claim; the instant action is not a mere insincere promise case. Instead, plaintiff relies on the theory of a misleading partial disclosure, alleging that it would not have entered into this contract if it knew of the true facts. The damages sought by the two causes of action are different; the fraud claim seeks more than the contract claim.

Defendant’s contention that plaintiff’s fraud claim is palpably insufficient as a matter of law because it fails to allege facts showing a misrepresentation of a present fact is unavailing. A fraud claim can be based on a misrepresentation or a material omission of fact. A misleading partial disclosure can be actionable as fraud.

(Internal quotations and citations omitted) (emphasis added).

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