Justice David Schmidt
An action arose from allegations that plaintiffs, first-time home buyers, fell victim to a fraudulent and/or predatory sale and lending scheme that targeted minority purchasers. Plaintiffs alleged that defendants violated GBL §349 and committed fraud by making false representations about the condition of plaintiffs' home and concealing unsafe, substandard and hazardous property conditions. The court dismissed the plaintiffs' GBL §349 claim against the moving defendants, finding that there was no impact on the public at large as the fact that the plaintiffs' home was constructed in a defective fashion carried the potential to affect only a single real estate transaction involving a single piece of property. The court also dismissed the fraud claim, finding that the fraud allegations fall far short of the level of specificity required to sustain such a claim. The court further determined that the plaintiffs failed to articulate any cognizable damages that would satisfy the out-of-pocket rule.
