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Stern v. Consumer Equities Associates

Appellate Division of the Supreme Court of New York, Second Department
Apr 30, 1990
160 A.D.2d 993 (N.Y. App. Div. 1990)

Opinion

April 30, 1990

Appeal from the Supreme Court, Nassau County (Becker, J.).


Ordered that the order is affirmed, with costs.

The defendant Finger contends that the plaintiff's motion to amend the complaint to add a cause of action to recover damages for fraud should have been denied because the plaintiff failed to plead fraud with the requisite specificity, and because the proposed fraud claim failed to allege any fraud committed upon the plaintiff. Pursuant to CPLR 3016 (b), the misconduct complained of must be set forth in sufficient detail to clearly inform a defendant with respect to the incidents complained of (Lanzi v. Brooks, 43 N.Y.2d 778, 780). Also, under CPLR 3013, "[a] complaint being attacked for insufficiency is deemed to allege whatever can be implied from its statements by a fair and reasonable interpretation. The test is whether the pleadings give adequate notice to the court and the adverse party of the transactions or occurrences intended to be proved" (Two Clinton Sq. Corp. v. Friedler, 91 A.D.2d 1193, 1194). Here, the complaint identifies the parties, transactions and dates, as well as the requisite elements of fraud, i.e., misrepresentation, scienter, reliance and damages. By pleading these factual allegations the plaintiff has adequately pleaded fraud and has plainly apprised the defendant Finger of it.

In New York "[t]he general rule is that absent fraud, collusion, malicious acts or other special circumstances, an attorney is not liable to third parties, not in privity, for harm caused by professional negligence" (Associated Factors Corp. v O'Neill Detective Agency, 146 A.D.2d 728, 729; Estate of Spivey v Pulley, 138 A.D.2d 563, 564; cf., Credit Alliance Corp. v Andersen Co., 65 N.Y.2d 536, mot to amend remittitur granted 66 N.Y.2d 812; see generally, Cooper, Accountants' Liability: Privity Rule Is Necessary in Today's Marketplace, NYLJ, Apr. 9, 1990, at 1, col 1). Here, however, since fraud and conspiracy to commit fraud have been alleged, privity is not required to sustain the action for legal malpractice. Lawrence, J.P., Eiber, Rosenblatt and Miller, JJ., concur.


Summaries of

Stern v. Consumer Equities Associates

Appellate Division of the Supreme Court of New York, Second Department
Apr 30, 1990
160 A.D.2d 993 (N.Y. App. Div. 1990)
Case details for

Stern v. Consumer Equities Associates

Case Details

Full title:JOSEPH STERN, Respondent, v. CONSUMER EQUITIES ASSOCIATES et al.…

Court:Appellate Division of the Supreme Court of New York, Second Department

Date published: Apr 30, 1990

Citations

160 A.D.2d 993 (N.Y. App. Div. 1990)
554 N.Y.S.2d 714

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