Courts Continue to Require Alleged Fraudulent Misrepresentations to be Vetted Prudently—Dismissing Fraud Claims for Lack of Reasonable Reliance

Two recent decisions from the Appellate Division, Second and Third Departments, underscore the fundamental requirement of reasonable or justifiable reliance for the cause of action of fraud, and in particular if “the facts represented are not matters peculiarly within the defendant’s knowledge, and the plaintiff has the means available to it of knowing, by the exercise of ordinary intelligence, the truth or the real quality of the subject of the representation, the plaintiff must make use of those means, or it will not be heard to complain that it was induced to enter into the transaction by misrepresentations.”

Chase v. Leidner—Third Department

The context of the Third Department’s decision in Chase v Leidner, 2025 NY Slip Op 06104 (3d Dep’t Decided Nov. 6, 2025) was the sale of a recreational vehicle (a camper) that was advertised by the sellers to be in “immaculate condition.” It turned out that it was not.

Read the full blog post here.