Challenging Releases And Settlements Based On Fraudulent Inducement Is A Challenge

In my July 8, 2019 post, I reviewed the law on challenging releases and settlements based upon alleged claims of fraud and fraudulent inducement. This is an update, reporting on two new decisions, one by the First Department, and the other by the Third Department, upholding the releases/settlements, and rejecting the fraud claim. Relevant excerpts of each decision are set forth below, followed by my original post.

First Department Decision

Sodhi v IAC/InterActive Corp., 2022 NY Slip Op 00067 (1^st Dep't Decided Jan. 6, 2022):

The releases in the settlement letters bar plaintiffs' claims for breach of contract, breach of the implied covenant, and fraud arising from the alleged misrepresentation of the value of the units (see Global Mins. & Metals Corp. v Holme, 35 AD3d 93, 98 [1st Dept 2006], lv denied 8 NY3d 804 [2007]).