Opinion

Doctor Fred L. Pasternack v. Laboratory Corporation of America Holdings

  • 27 N.Y.3d 817
  • 59 N.E.3d 485
Court
New York Court of Appeals
Filed
Jun 30, 2016
Status
Published
Author
Stein
On the bench
Abdus-Salaam, Difiore, Pigott, Garcia, Stein, Fahey, Rivera
Cited by
247 cases
Authority
More cited than 12.2%

declining to "extend the reliance element of fraud to include a claim based on the reliance of a third party, rather than the plaintiff," id. at 829, 37 N.Y.S.3d 750, 59 N.E.3d 485, but acknowledging that a plaintiff can allege fraud to the extent that a third party "acted as a conduit to relay the false statement to plaintiff, who then [personally] relied on the misrepresentation," id. at 828, 37 N.Y.S.3d 750, 59 N.E.3d 485

How later courts described this case

  • declining to "extend the reliance element of fraud to include a claim based on the reliance of a third party, rather than the plaintiff," id. at 829, 37 N.Y.S.3d 750, 59 N.E.3d 485, but acknowledging that a plaintiff can allege fraud to the extent that a third party "acted as a conduit to relay the false statement to plaintiff, who then [personally] relied on the misrepresentation," id. at 828, 37 N.Y.S.3d 750, 59 N.E.3d 485
  • deciding the issue certified by the Second Circuit that “a fraud claim requires the plaintiff to have relied upon a misrepresentation by a defendant” and declining to “extend the reliance element of fraud to include a claim based on the reliance of a third party [on that information] rather than plaintiff.”
  • declining “to extend Landon’s reasoning to impose a duty upon a laboratory to test subjects that requires the laboratory to adhere to aspects of the federal regulations and guidelines that do not implicate the scientific integrity of the testing process.”
  • disagreeing with the majority that reliance cannot be established through evidence that a third party relied on the alleged misrepresentation even when the misrepresentation was made with the intent of influencing the plaintiff and causing injury

Written by the judges who cited it.

The opinion

Stein, J.

(dissenting in part). I agree with, and join in, the *830 majority opinion insofar as the majority responds to the second certified question regarding third-party reliance in fraud claims. However, I join Judge Fahey’s dissent, for the reasons stated therein, with respect to the first certified question concerning the scope of the duty under Landon v Kroll Lab. Specialists, Inc. ( 22 NY3d 1 [2013]).

This is a copy of a public record, reproduced as it was published. It is not legal advice, and it may not be the version a court would rely on. Check the official source before you cite it.

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