Success, LLC v. Stonehenge Capital Co.
Opinion of the Court
The fraud-based causes of action, which were stated with sufficient particularity (see CPLR 3016 [b]), were properly allowed to proceed. Unlike the breach of contract claims that the motion court dismissed, the fraud claims are not based upon misrepresentations about the funding of plaintiffs’ film project. Rather, the fraud claims are based upon a misrepresentation of then-present facts, e.g., that the budget for the film had actually been approved and that all conditions precedent had been met. Such misrepresentations are collateral to the contract, as they involve a breach of duty separate from a breach of contract (see First Bank of Ams. v Motor Car Funding, 257 AD2d 287, 291-292 [1999]).
The court’s misstatement of fact in its order, namely, that a particular memorandum entitled “Success Film Financing Package” had been circulated to defendant Stonehenge, does not affect our determination.
We have considered appellants’ remaining contentions and find them unavailing. Concur—Gonzalez, P.J., Tom, Andrias, Acosta and Abdus-Salaam, JJ. [Prior Case History: 2010 NY Slip Op 30444(U).]
Case-law data current through December 31, 2025. Source: CourtListener bulk data.