Law.com Subscribers SAVE 30%

Call 855-808-4530 or email [email protected] to receive your discount on a new subscription.

'Sophisticated' Losers

By Joseph I. Farca

Your attorney just emailed you a copy of a court decision in your fraud case against a landlord who leased you space that you subsequently learned could not legally be occupied for your intended use. If the court decision called you "sophisticated," it was probably not intended as a compliment, but instead signaled the death knell of your fraud claim.

What's in a name? "Sophisticated" parties who cry "fraud" when they believe they did not receive the full benefit of their bargain are often turned away by the courts because they could and should have conducted due diligence before signing or closing on their contract.

New York: The Sophisticated

New York's fraudulent misrepresentation rule appears relatively simple on its face. It requires the complaining party to establish five elements, sometimes colloquially referred to as the "five fingers of fraud":

  1. A representation regarding a material fact;
  2. Which was false;
  3. Which was made with the intent to deceive;
  4. And on which the complainant reasonably relied;
  5. To his detriment.

See, Channel Master Corp. v. Aluminium Limited Sales, Inc., 4 NY2d 403, 407 (1958).

This premium content is locked for Entertainment Law & Finance subscribers only

  • Stay current on the latest information, rulings, regulations, and trends
  • Includes practical, must-have information on copyrights, royalties, AI, and more
  • Tap into expert guidance from top entertainment lawyers and experts

For enterprise-wide or corporate acess, please contact Customer Service at [email protected] or 877-256-2473

Read These Next
The Article 8 Opt In Image

The Article 8 opt-in election adds an additional layer of complexity to the already labyrinthine rules governing perfection of security interests under the UCC. A lender that is unaware of the nuances created by the opt in (may find its security interest vulnerable to being primed by another party that has taken steps to perfect in a superior manner under the circumstances.

Major Differences In UK, U.S. Copyright Laws Image

This article highlights how copyright law in the United Kingdom differs from U.S. copyright law, and points out differences that may be crucial to entertainment and media businesses familiar with U.S law that are interested in operating in the United Kingdom or under UK law. The article also briefly addresses contrasts in UK and U.S. trademark law.

Beach Boys Songs Written Decades Ago Triggered Current Quarrel With Lawyers Image

There's current litigation in the ongoing Beach Boys litigation saga. A lawsuit filed in 2019 against Nevada residents Mike Love and his wife Jacquelyne in the U.S. District Court for the District of Nevada that alleges inaccurate payment by the Loves under the retainer agreement and seeks $84.5 million in damages.

Strategy vs. Tactics: Two Sides of a Difficult Coin Image

With each successive large-scale cyber attack, it is slowly becoming clear that ransomware attacks are targeting the critical infrastructure of the most powerful country on the planet. Understanding the strategy, and tactics of our opponents, as well as the strategy and the tactics we implement as a response are vital to victory.

Transfer Tax Implications on Real Property Leases Image

The real property transfer tax does not apply to all leases, and understanding the tax rules of the applicable jurisdiction can allow parties to plan ahead to avoid unnecessary tax liability.