Wilk Auslander Obtains Dismissal of $13.8 Million Fraud Claims

On May 10, 2023, Justice Lyle E. Frank of New York Supreme Court issued a decision granting the motion to dismiss that Wilk Auslander filed on behalf of our client, the seller of a $13.8 million dollar townhouse in Greenwich Village in a lawsuit captioned 829 Greenwich Street, LLC v. Ole Slorer et al.

Purchaser-Plaintiff brought an action alleging fraudulent inducement claims against our seller-client, claiming that the seller had concealed and misrepresented instances of severe water penetration and mold. However, the purchase and sale agreement contained a provision which explicitly stated that the purchaser-plaintiff was not relying on any representations by the seller, and that it was responsible for its own due diligence regarding the condition of the property. Furthermore, purchaser-plaintiff had conducted a home inspection which revealed instances of water penetration, and which should have prompted further investigation.

We were successful in arguing that purchaser-plaintiff knew about the alleged water problems and that it could not establish that it had justifiably relied on the seller’s alleged misrepresentations, a key element in fraudulent inducement claims. We were able to obtain a full dismissal of the action against our client. The Court’s decision adopts many of the arguments that we raised in our dismissal motion. Wilk Auslander’s team was led by Alan Zuckerbrod, Arielle Wasserman and Michael Contos. A copy of the Court’s decision and order can be found here.