On January 23, 2024, the First Department issued a decision in Eastern Effects, Inc. v. 3911 Lemmon Ave. Assoc., LLC, 2024 NY Slip Op. 00268, holding that a fraud claim was duplicative of a contract claim when it was based on an alleged misrepresentation of the intention to perform the terms of the contract, explaining:
A fraudulent inducement cause of action is duplicative of a breach of contract claim where it is based on the same facts, seeks the same damages, and fails to allege a breach of an independent duty outside of the contract. A fraud claim is subject to dismissal when it is duplicative of a contract claim, such as where there is an insincere promise of future performance of the contract itself.
Here, plaintiff identifies no independent duty outside the contract to support a fraud claim. The fraud claim is based on alleged misrepresentations and omissions regarding the timing and performance of the bulkhead work, plaintiff’s compensation for vacating the premises and lost business, landlord’s duty to make repairs, and the termination of the lease. These are all issues that are contemplated by the settlement agreement, the lease, or both, which can be relied upon to make plaintiff whole if it prevails on its breach of contract cause of action.
(Internal citations omitted).