Claim for Fraudulent Inducement Based Upon an Omission Dismissed for Failure to Allege a Fiduciary Relationship

On January 27, 2022, Justice Borrok of the New York County Commercial Division issued a decision in HOV Servs., Inc. v. ASG Tech. Group, Inc., 2022 NY Slip Op. 30299(U), dismissing a fraudulent inducement claim based upon an omission for failure to allege a fiduciary relationship, explaining:

To state a cause of action for fraudulent inducement, a party must allege an intentional material misrepresentation, intent to defraud, reasonable reliance, and damages. An omission does not constitute fraud unless there is a fiduciary relationship between the parties. HOV fails to allege that such a relationship existed here, and, as such, the cause of action for fraudulent inducement must be dismissed.

(Internal citations omitted).

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