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Scott E. Mollen Scott E. Mollen

Brokerage—Law firm Alleged It Was Treated as an Out of Town “Yokel”—Tenant’s Motion to Dismiss Real Estate—Broker’s Fraud Counterclaim Granted, But Judiciary Law §487 Counterclaim Survived Dismissal Motion—Fraud Claim Did Not Plead Compensable Damages—Law firm’s Alleged Misrepresentations as to Expected Future Growth Constituted “Mere Puffery” or Expectations of Future Performance, Which Cannot Sustain a Cause of Action for Fraud

A law firm (firm) sued its real estate broker (broker) for breach of fiduciary duty, fraud, negligent misrepresentation, and professional negligence. The broker asserted counterclaims for fraud and violation of Judiciary Law §487 (§487). The firm moved pursuant to CPLR §§3016, and 3211(a)(7) to dismiss the broker’s counterclaims. The court granted the firm’s motion to dismiss the fraud claim, but denied the motion to dismiss the §487 claim.

The Los Angles based firm was looking to expand in New York City. It hired the broker to help find appropriate space. The broker held itself out as having particular expertise in providing real estate brokerage services to law firms.

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