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BOARD OF MGRS. OF THE WALTON CONDOMINIUM v. 264 H2O BORROWER, LLC

11152.

180 A.D.3d 622 (2020)

120 N.Y.S.3d 31

2020 NY Slip Op 01395

Board of Managers of the Walton Condominium, Respondent, v. 264 H2O Borrower, LLC, Defendant, and Robert Quaco et al., Appellants.

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

Decided February 27, 2020.

Contrary to defendants' contention, the fraud cause of action is based on affirmative misrepresentations, not omissions. Therefore, the motion court correctly found that it was not barred by the Martin Act (see Board of Mgrs. of the S. Star v WSA Equities, LLC, 140 A.D.3d 405 [1st Dept 2016]). The court also correctly found that defendants, who are principals of the sponsor, and who signed the certification in the offering plan,...

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