Negligent Misrepresentation Claim Fails for Lack of Special Relationship

On December 22, 2023, the Fourth Department issued a decision in 2006905 Ontario Inc. v. Goodrich Aerospace Can., Ltd., 2023 NY Slip Op. 06681, holding that a negligent misrepresentation claim failed for lack of a special relationship between the parties, explaining:

Contrary to plaintiff’s contention, we conclude that Supreme Court (Chimes, J.) properly dismissed, pursuant to CPLR 3211 (a) (7), the negligent misrepresentation and fraudulent concealment causes of action alleged in the amended complaint. Plaintiff failed to allege the requisite special relationship between it and defendant Goodrich Aerospace Canada, Ltd. (Goodrich) to state a cause of action for negligent misrepresentation. Generally, a special relationship does not arise out of an ordinary arm’s length business transaction between two parties and, here, we conclude that plaintiff alleged, at most, that it and Goodrich had an ordinary business relationship. For the same reason, plaintiff failed to state a cause of action for fraudulent concealment.

(Internal quotations and citations omitted).

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