Choice of Law in Contractual Fraud Claims: New York vs. Delaware
By: James A. Deeken
The elements of a cause of action for fraud in New York are:
1. Representation was made of a material fact.
2. Representation was untrue.
3. Party making the representation knew it was untrue.
4. Representation was made with the intent to deceive and for the purpose of inducing the recipient to act upon it.
5. Recipient justifiably relied on the representation.
6. By relying on the untrue statement, the recipient suffered damages.1
Under New York law, the plaintiff needs to establish all of these elements by clear and convincing evidence.2
Read more: Choice of Law in Contractual Fraud Claims: New York vs. Delaware | Akin (akingump.com)
1 See, e.g., DynCorp v. GTE Corp., 215 F. Supp. 2d 308, 326 (S.D.N.Y 2002); Brown v. Lockwood, 76 A.D.2d 721, 730 (2d Dep’t 1988); Banque Arabe et Internationale D'Investissement v. Maryland Nat'l Bank, 57 F.3d 146, 153 (2d Cir. 1995).
2 See, e.g., Chopp v. Welbourne & Purdy Agency, Inc., 135 A.D.2d 958, 959 (3d Dep’t 1987); Mix v. Neff, 99 A.D.2d 189, 183 (3d. Dep’t 1984).
