599 N.Y.S.2d 563 | N.Y. App. Div. | 1993
—Order, Supreme Court, New York County (Stanley Sklar, J.), entered September 11, 1992, which denied defendants’ CPLR 3211 (a) (7) motion to dismiss plaintiffs’ fraud cause of action, against all defendants except Lear Siegler Diversified Holdings Corp. and Lear Siegler Intermediate Corp., and which granted said motion to dismiss the negligent misrepresentation cause of action, to the extent of dismissing that cause of action as against the "nonsignatory defendants”, unanimously affirmed, with costs.
Contrary to defendants’ claim on appeal, the fraud cause of action is pleaded with sufficient particularity to satisfy CPLR 3016 (b). The complaint sets forth the interlocking relationship of the various defendants, and when that relationship and the other allegations in the complaint are read in the light most favorable to plaintiffs, plaintiffs have adequately alleged that the defendants-appellants authorized the various misrepresentations. Though it is well settled that a cause of action for fraud may not be maintained when the only fraud
