Meiterman v. Corporate Habitat, 9709

• Decision Date: 25 June 2019
• Docket Number: Index 100942/17,9709
• Citation: 173 A.D.3d 593,103 N.Y.S.3d 406
• Parties: Bernard MEITERMAN, et al., Plaintiffs–Respondents, v. CORPORATE HABITAT, et al., Defendants–Appellants, John Does 1–5, et al., Defendants.
• Court: New York Supreme Court — Appellate Division

173 A.D.3d 593

103 N.Y.S.3d 406

Bernard MEITERMAN, et al., Plaintiffs–Respondents,

v. CORPORATE HABITAT, et al., Defendants–Appellants,John Does 1–5, et al., Defendants.

9709

Index 100942/17

Supreme Court, Appellate Division, First Department, New York.

ENTERED: JUNE 25, 2019

Law Office of D. Paul Martin PLLC, New York (D. Paul Martin of counsel), for Corporate Habitat and Yacov Smouha, appellants.

Law Offices of Jason J. Rebhun, P.C., New York (Jason J. Rebhun of counsel), for Da Development Group and David Shenfeld, appellants.

Bernard Meiterman, respondent pro se.

Jay Domb, respondent pro se.

Glenn Isaacs, respondent pro se.

Renwick, J.P., Manzanet–Daniels, Webber, Oing, JJ.

Order, Supreme Court, New York County (Barbara Jaffe, J.), entered September 24, 2018, which denied defendants' motions to dismiss the complaint pursuant to CPLR 3106(b) and CPLR 3211(a)(1),(3), and (7), and granted pro se plaintiffs' cross motion for leave to file an amended complaint to the extent of directing plaintiffs to file a second proposed (first) amended complaint, unanimously reversed, on the law, without costs, defendants' motions granted and plaintiffs' motion denied. The Clerk is directed to enter judgment accordingly.

Plaintiffs, the individuals who own the membership interests in a New York State limited liability corporation formed for the purpose of purchasing and developing certain real property, allege fraud and negligent misrepresentation in connection with their negotiations with defendants to purchase those membership interests and the attendant right of the LLC to purchase the property.

The court erred in concluding that plaintiffs are the real parties in interest and have standing to sue in their own names (see Centaur Props., LLC v. Farahdian , 29 A.D.3d 468, 817 N.Y.S.2d 7 [1st Dept. 2006] ).

In any event, the vague and general allegations in the original and amended pleadings that defendants misled plaintiffs about defendant's financial abilities and defendant's intent to consummate the transaction being negotiated are conclusory and fail to satisfy the standard for pleading fraud under CPLR 3016(b) (see Eurycleia Partners, LP v. Seward & Kissel, LLP , 12 N.Y.3d 553, 559, 883 N.Y.S.2d 147, 910 N.E.2d 976 [2009] ; Cronos Group Ltd. v. XComIP, LLC , 156 A.D.3d 54, 61, 64 N.Y.S.3d 180 [1st Dept. 2017] ). The complaint fails to state a cause of action for negligent misrepresentation, because plaintiffs do not allege the existence of a special or privity-like...