Rojas v. Paine

101 A.D.3d 843, 956 N.Y.2d 81
Appellate Division of the Supreme Court of the State of New York·Decided December 12, 2012·Published·Cited by 13 cases

Opinion

[844] In April 2005, the plaintiffs entered into a contract to purchase a one-family house in the Town of Greenburgh from the defendants Andrew Paine and Karen Paine (hereinafter together the Paines). The house was situated on property designated as Lot No. 8 on a subdivision map filed in the Westchester County Clerk’s office. The Paines were represented in the real estate transaction by the defendant attorney Joyce Danziger. At the closing on June 6, 2005, the Paines delivered to the plaintiffs a bargain and sale deed reciting that the property being granted was “the same property” as had been transferred to the Paines by two separate deeds, both recorded in the Westchester County Clerk’s office on March 4, 2005. However, the description of the property contained in Schedule A of the deed delivered on June 6, 2005, only contained the description of the portion of Lot No. 8 set forth in one of the two deeds previously recorded on March 4, 2005.

More than two years after the closing, the plaintiffs commenced this action against several parties, including the Paines and Danziger, claiming, inter alia, that the deed delivered on June 6, 2005, failed to convey all of Lot No. 8, and that the Paines and Danziger had intentionally concealed the fact that Lot No. 8 had been “illegally subdivided” by the two deeds recorded on March 4, 2005. The first cause of action, asserted against, among others, the Paines and Danziger, sought to recover damages for fraud, and the second cause of action, asserted solely against the Paines, sought specific performance of the contract of sale. The Paines moved, among other things, pursuant to CPLR 3211 (a) (1) and (7) to dismiss the complaint insofar as asserted against them, and Danziger separately moved [845] pursuant to CPLR 3211 (a) (7) for the same relief. The plaintiffs cross-moved to compel the transfer of certain real property to them.

Contrary to the plaintiffs’ contention, the Supreme Court properly concluded that their first cause of action, seeking to recover damages for fraud, failed to state a cause of action against the Paines and Danziger. “New York adheres to the doctrine of caveat emptor and imposes no duty on the seller or the seller’s agent to disclose any information concerning the premises where the parties deal at arm’s length, unless there is some conduct on the part of the seller or the seller’s agent which constitutes active concealment” (Jablonski v Rapalje, 14 AD3d 484, 485 [2005]; see Perez-Faringer v Heilman, 95 AD3d 853, 854 [2012]; Laxer v Edelman, 75 AD3d 584, 585 [2010]; Rozen v 7 Calf Cr., LLC, 52 AD3d 590, 592-593 [2008]; Mancuso v Rubin, 52 AD3d 580, 584 [2008]). Mere silence on the part of the seller, without some affirmative act of deception, is not actionable as fraud (see Rozen v 7 Calf Cr., LLC, 52 AD3d at 593). For concealment to be actionable as fraud, the plaintiff must show that the defendant “thwarted” the plaintiffs efforts to fulfill his or her responsibilities imposed by the doctrine of caveat emptor (see PerezFaringer v Heilman, 95 AD3d at 854; Beach 104 St. Realty, Inc. v Kisslev-Mazel Realty, LLC, 76 AD3d 661, 663-664 [2010]). Where “the facts represented are not matters peculiarly within the party’s knowledge, and the other party has the means available to him [or her] of knowing, by the exercise or ordinary intelligence, the truth or the real quality of the subject of the representation, he [or she] must make use of those means, or he [or she] will not be heard to complain that he [or she] was induced to enter into the transaction by misrepresentations” (Danann Realty Corp. v Harris, 5 NY2d 317, 322 [1959]; see Perez-Faringer v Heilman, 95 AD3d at 854; East End Cement & Stone, Inc. v Carnevale, 73 AD3d 974, 975 [2010]).

Accepting the facts alleged in the complaint as true and according the plaintiffs the benefit of every possible favorable inference, as we must on a motion pursuant to CPLR 3211 (a) (7) (see Leon v Martinez, 84 NY2d 83, 87-88 [1994]; Rovello v Orofino Realty Co., 40 NY2d 633, 634 [1976]), the first cause of action fails to state a cause of action to recover damages against the Paines and Danziger for fraud. The plaintiffs’ allegation that the Paines and Danziger intentionally concealed the fact that Lot No. 8 had been “illegally subdivided” by the two deeds recorded on March 4, 2005, is insufficient to support a fraudulent concealment claim because they had no duty, under the doctrine of caveat emptor, to disclose any information regarding [846] the premises. Moreover, since the recorded deeds were matters of public record, not exclusively within the knowledge of the Paines and their attorney Danziger, the failure to disclose that the Paines had acquired title by two separate deeds, thereby subdividing Lot No. 8, did not constitute active concealment, and is not actionable as a fraud (see Perez-Faringer v Heilman, 95 AD3d at 854; Stollsteimer v Kohler, 77 AD3d 1259, 1260 [2010]; Clearmont Prop., LLC v Eisner, 58 AD3d 1052, 1056 [2009]; Rozen v 7 Calf Cr, LLC, 52 AD3d at 593; F.A.S.A. Constr. Corp. v Degenshein, 47 AD3d 877, 879 [2008]; Homeside Dev. Corp. v Dassa Brill LLC, 27 AD3d 258, 259 [2006]; Mosca v Kiner, 277 AD2d 937, 938 [2000]; see also East End Cement & Stone, Inc. v Carnevale, 73 AD3d at 975). Accordingly, the Supreme Court properly granted Danziger’s motion pursuant to CPLR 3211 (a) (7) to dismiss the complaint insofar as asserted against her, and properly granted that branch of the Paines’ motion which was pursuant to CPLR 3211 (a) (7) to dismiss the first cause of action insofar as asserted against them.

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Rojas v. Paine, 101 A.D.3d 843, 956 N.Y.2d 81 (N.Y. Ct. App. 2012).

101 A.D.3d 843 (Rojas v. Paine) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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