New York High Court Weighs in on Scienter, Reliance and Alleged Material Omission

Readers of this Blog know that when the New York Court of Appeals weighs in on fraud-related issues, I listen (and write).

The latest installment is the Court’s decision in the case of Golobe v Mielnicki, 2025 NY Slip Op 01670 (NY Decided on March 20, 2025).

The Court rejected an attempt to fashion a fraud claim out of alleged misstatements or omissions that were not actually known to be false when made (or omitted) and not conveyed (or concealed) to the alleged injured party. In such circumstances, the Court agreed with both lower courts that the necessary elements of scienter and reliance were missing. Even the dissenting judge agreed there was no evidence of fraudulent intent.

Facts of Golobe

The context of the decision in Golobe was a battle over a decedent’s estate, but the legal issues were not limited solely to traditional estate principles—extending into fraud, breach of fiduciary duty and adverse possession.

The foundational factual scenario involved some wild twists and turns, so a bit of concentration will be required.

Read the full blog post here.