277 MOTT STREET LLC v. FOUNTAINHEAD CONSTRUCTION LLC

4841, 603168/08.

83 A.D.3d 541 (2011)

922 N.Y.S.2d 299

277 MOTT STREET LLC, Appellant, v. FOUNTAINHEAD CONSTRUCTION LLC et al., Respondents.

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

Decided April 19, 2011.


The complaint alleges that defendant Abrams, the principal of defendant Fountainhead Construction LLC, induced plaintiff to make a $1.5 million "down payment" to Fountainhead against a "to be negotiated" construction contract, "always intend[ing]" to divert the funds for purposes other than the construction on plaintiff's property. These allegations state a cause of action for fraud (see Shisgal v Brown, 21 A.D.3d 845,

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