On October 17, 2022, Justice Cohen of the New York County Commercial Division issued a decision in G-Z/10 UNP Realty, LLC v. SLCE Architects, LLP, 2022 NY Slip Op. 33538(U), dismissing a negligent misrepresentation claim for failure to allege a special relationship between the parties, explaining:
A negligent misrepresentation claim must be pled with particularity pursuant to CPLR 3016(b). The elements of a cause of action for negligent misrepresentation are'(l) the existence of a special or privity-like relationship imposing a duty on the defendant to impart correct information to the plaintiff; (2) that the information was incorrect; and (3) reasonable reliance on the information. Relevant here, a negligent misrepresentation cause of action requires a party to plead facts showing a special relationship of trust and confidence between the parties, which created a duty on the part of one party to impart correct information.
A special relationship exists when (1) the parties are in a relationship of trust and confidence, or (2) one of the parties has superior knowledge. Generally, the requisite special relationship does not exist between sophisticated commercial entities that enter into an agreement through an arm’s-length business transaction.
SLCE has failed to adequately plead a special relationship between itself and FP. Despite SLCE’ s invocation of the term special or privity-like relationship in its recitation of the elements, SLCE’s factual allegation is that SLCE’s reliance upon F+P’s services was contractually proscribed in the Completion Agreement between Plaintiff and SLCE. Thus, the only relationship between SLCE and FP is their common retention by G-Z, which has not filed a claim against FP. The Third Party Complaint’s allegations vis-a-vis the pertinent contract documents and SLCE’ s submissions do not indicate that any special relationship existed, and its pleading does not satisfy CPLR 3016(b).
(Internal quotations and citations omitted).