Antar Secures Total Victory in Trial on Commercial Fraud Claim
September 10, 2019 | |Mark Antar won a multi-day trial in the Commercial Division of the Kings County Supreme Court on behalf of the firm’s client, CANBE Properties LLC. In a 19-page opinion, the Court ruled in favor of CANBE on its claim for rescission of a $1.5 million purchase and sale agreement and accompanying promissory note based on fraudulent inducement. The Court also awarded CANBE money damages in the amount of $250,000.
CANBE had executed the agreement and note for the purchase of 50% of the shares of three Long Island companies that produce and distribute tattoo supplies (inks, needles, etc.) and media (tattoo industry magazines). After making its initial $250,000 installment payment, CANBE learned that the seller had made material misrepresentations regarding the financial health of the tattoo companies. CANBE brought suit seeking rescission of the agreement and note, and the return of its $250,000 installment payment based on fraudulent inducement. The defendant seller counterclaimed for the $1.25 million balance under the agreement and note.
At trial, CANBE and the manager of the tattoo companies offered testimony supporting CANBE’s claim that the defendant had lied about the companies’ finances in order to induce CANBE into executing the contract. The Court found the testimony of both witnesses to be “credible, supported, and unrefuted” and ultimately granted judgment in favor of CANBE on its claim for fraudulent inducement, rescinded the agreement and note, and awarded CANBE a money judgment in the amount of $250,000. The Court also denied and dismissed all of the defendant’s counterclaims.
