Diodato v. Eastchester Development Corp.

Decision Date20 May 1985
Citation489 N.Y.S.2d 293,111 A.D.2d 303
PartiesFrank DIODATO, et al., Respondents, v. EASTCHESTER DEVELOPMENT CORPORATION, et al., Appellants.
CourtNew York Supreme Court — Appellate Division

Goodhue Banks Arons & Pickett, Mount Kisco (John L. Arons, Mount Kisco, of counsel), for appellants.

John C. Wirth, Jr., White Plains (Maria Joy Frank, White Plains, of counsel), for respondents.

Before TITONE, J.P., and BRACKEN, RUBIN and LAWRENCE, JJ.

MEMORANDUM BY THE COURT.

In an action, inter alia, to recover damages for fraud in the inducement to enter into a contract, to recover damages for breach of that contract, and for specific performance thereof, defendants appeal, as limited by their brief, from so much of an order of the Supreme Court, Westchester County, entered August 16, 1983, as denied that branch of their motion which was to dismiss the plaintiffs' cause of action to recover damages for fraud in the inducement.

Order affirmed insofar as appealed from, with costs.

The plaintiffs' allegations that defendants falsely promised to equip their new residence with an elevator at no extra charge, and that this misrepresentation was designed to and did in fact induce plaintiffs to sign a contract of sale, were sufficient to state a cause of action to recover damages for fraud in the inducement. We reject defendants' contention that the fraud action is barred by the following clause which appeared in the contract of sale:

"16. LIMITATION ON REPRESENTATIONS AND PURCHASER'S RELIANCE--Purchaser represents to the Seller that the Purchaser knows, has examined and has investigated to the full satisfaction of the Purchaser the plans or the model (less any displayed EXTRAS) house type and the lot to be sold; that neither the Seller nor any agent, officer, employee or representative of the Seller has made any representation whatsoever regarding the subject matter of this sale or any part thereof or of any matter or thing pertaining thereto, or concerning any right, privilege or license in connection therewith, and the Purchaser in executing, delivering and/or performing this Agreement does not rely upon any statement and/or information except the list of displayed EXTRAS to whomsoever made or given, directly or indirectly, verbally or in writing by advertisement, except the Offering Plan for TOWNHOUSES AT LAKE ISLE ASSOCIATION, INC., incorporated herein by reference. The parties further agree that this instrument contains the entire...

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13 cases
  • Dean Witter Reynolds, Inc. v. Sanchez Espada
    • United States
    • U.S. District Court — District of Puerto Rico
    • February 22, 1997
    ...a contract is ambiguous when its terms are reasonably susceptible to two or more interpretations. Diodato v. Eastchester Development Corp., 111 A.D.2d 303, 489 N.Y.S.2d 293, 294 (2d Dept.1985). See also PaineWebber, Inc. v. Elahi, 87 F.3d at 600; In re Kam Kuo Seafood Corp., 76 B.R. 297 (Ba......
  • H. Sand & Co., Inc. v. Airtemp Corp.
    • United States
    • U.S. District Court — Southern District of New York
    • May 30, 1990
    ...v. Sassower, 66 N.Y.2d 991, 993, 489 N.E.2d 1283, 1284, 499 N.Y.S.2d 381, 382 (1985). See also Diodato v. Eastchester Dev. Corp., 111 A.D.2d 303, 304-305, 489 N.Y.S.2d 293, 294 (2d Dept. 1985). In light of the fact that we find the inspection clause prepared by plaintiff ambiguous, we do no......
  • In re Lady Madonna Industries, Inc.
    • United States
    • U.S. District Court — Southern District of New York
    • May 2, 1989
    ...An ambiguous claim is one that is susceptible to two reasonable interpretations. See Diodato v. Eastchester Development Corp., 111 A.D.2d 303, 304, 489 N.Y.S.2d 293, 294 (2d Dep't 1985). Where the court finds as a matter of law that the language is unambiguous, extrinsic evidence is not adm......
  • In re Kam Kuo Seafood Corp., Bankruptcy No. 83 B 11836
    • United States
    • U.S. Bankruptcy Court — Southern District of New York
    • July 17, 1987
    ...(1977). An ambiguous clause is one that is susceptible to two reasonable interpretations. Diodato v. Eastchester Development Corporation, 111 A.D.2d 303, 304, 489 N.Y.S.2d 293, 294 (2d Dep't 1985). Where the court finds as a matter of law that the language is unambiguous, extrinsic evidence......
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