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http://nycourts.law.com/CourtDocumentViewer.asp?view=Document&docID=46627 Judge Hellerstein AN ACTION arose from an attempt to enter the growing Canadian market for health products such as vitamins and dietary supplements. Plaintiff is an American franchisor of health and dietary supplement stores and defendant is a Canadian corporation which contracted, under a master franchise agreement, to become plaintiff’s master franchisee in Ontario and to establish franchises that would sell plaintiff’s products in the Canadian market. The alleged fraudulent misrepresentation in this action is the false labeling of products in order not to mention ingredients that may not be sold without a prescription under Canadian law. The court denied plaintiff’s motion for summary judgment finding, among other things, that defendants’ fraud counterclaim would be permitted to survive alongside their claim for breach of contract. The court, however, required defendants to make an offer of proof before trial as to their viable fraud-based damages.

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