Litigators Notch Victory with Denial of Defendants’ Motion to Dismiss in Client’s Negligent Misrepresentation and Professional Negligence Action

On March 21, 2025, the Commercial Division of the Supreme Court, New York County (Hon. Andrew Borrok, J.S.C.), denied in its entirety a motion to dismiss the Second Amended Complaint filed by Kane Kessler, P.C. on behalf of its clients Legacy Organization, Inc., Marc Smet, and WWRS Belgium, N.V. The action asserts claims against a law firm and its principal for professional negligence and negligent misrepresentation in connection with a multi-million dollar foreign investment transaction.

The Court rejected the defendants’ arguments under CPLR 3211(a)(1), (a)(5), and (a)(7), holding that the documentary evidence offered by the defense did not conclusively refute plaintiffs’ claims. In a supplemental order, the Court emphasized that the granular allegations of the defendants’ active participation in the alleged fraud—including preparing and revising legal opinions to induce investment—were sufficient to support a “near-privity” relationship. The Court further found that plaintiffs’ claims could not be deemed untimely as a matter of law where the complaint contained adequate allegations of continuous representation through 2020.

The clients are represented by Arthur M. Rosenberg and Jonathan M. Sabin of the firm’s Litigation Department.