Fourth Department – Fraudulent Inducement: Violet Realty v. Gerster Sales & Service

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Appellate Division, Fourth Department – Fraudulent Inducement – Predictive Estimates

Violet Realty v. Gerster Sales & Service

CA 14-01334

Appealed from Supreme Court, Erie County

Background: The parties entered into a contract wherein the defendant sold and installed a boiler at a commercial property owned by the plaintiff. When the plaintiff discovered that the boiler was not producing the energy savings anticipated at the time the contract was entered, it ceased payments under the contract and commenced a breach of contract action. The plaintiff appeals from an order that granted the defendant’s motion for summary judgment dismissing the fraudulent inducement cause of action.

Ruling: The Appellate Division noted that the defendant established that it provided the plaintiff with mere predictive estimates of cost savings from the new boiler and the plaintiff failed to raise an issue of fact.

Michael E. Ferdman of Hiscock & Barclay for the plaintiff-appellant-respondent; Sean J. Mackenzie of Magavern Magavern Grimm for the defendant-respondent-appellant