RSD857, LLC v. Wright

Summary

The Appellate Division, First Department unanimously affirmed an order denying John Viscusi's motion to dismiss fraud counterclaims asserted by Albert Wright. The court held that Wright adequately pleaded that Viscusi's appraisal significantly undervalued the property, contained misleading statements, and was reasonably relied upon in connection with a short sale.

Holdings

1. Although appraisals are generally not actionable under a theory of fraud, an expert opinion may be fraudulent when the grounds supporting it are so flimsy as to lead to the conclusion that there was no genuine belief behind it.
2. Wright adequately pleaded a fraud claim against Viscusi, including falsity, material misrepresentation, knowledge or awareness of intended reliance, reasonable reliance, and sufficient factual particularity.

Questions Presented

1. Whether Wright adequately pleaded a fraud claim based on Viscusi's appraisal and alleged misrepresentations.
2. Whether an expert appraisal may support a fraud claim when the grounds underlying the opinion are so flimsy as to indicate that the expert lacked a genuine belief in the opinion.
3. Whether Wright adequately pleaded Viscusi's knowledge that the appraisal would be relied upon, reasonable reliance, and sufficient particularity despite pleading some allegations on information and belief.

Disposition

affirmed