Appellate Division, First Department · November 5, 2026 · 2026 NY Slip Op 06543
Shelby’s Toy Store Inc. v Shelby Evolution, LLC
Read the official decision: 2026 NY Slip Op 06543
Holding The court reversed the lower court’s denial of a motion to dismiss a fraudulent misrepresentation claim, finding the claim insufficient due to group pleading and a failure to plead elements with specificity. The court further held that damages for being induced to negotiate are not cognizable in fraud and that the claim was duplicative of the breach of contract claim.
The court’s words
This claim was similarly insufficient and should have been dismissed because plaintiff impermissibly used group pleading
2026 NY Slip Op 06543, at the official text
To the extent that plaintiff alleges that it was induced to negotiate the agreement, such damages are not cognizable in fraud
2026 NY Slip Op 06543, at the official text
The claim is in any event duplicative of the breach of contract claim
2026 NY Slip Op 06543, at the official text
| Court | Appellate Division, First Department |
|---|---|
| Decided | November 5, 2026 |
| Citation | 2026 NY Slip Op 06543 |
| Area of law | Contracts and Commercial |
| Week | Week ending November 7, 2026 |
| Official text | Official decision: 2026 NY Slip Op 06543 |
| Publication status | Slip opinions are uncorrected and subject to revision before publication in the Official Reports. |
| Source feed | New York slip opinion page |
| Law Watch record id | 1833 |
Recommended citation
ESQ HQ, New York Law Watch, Shelby’s Toy Store Inc. v Shelby Evolution, LLC, 2026 NY Slip Op 06543 (Appellate Division, First Department, November 5, 2026), https://esqhq.com/decisions/2026-ny-slip-op-06543/
How this record was made
Holding drafted by Law Watch’s in-house model, graded by three reviewers; every quotation verified word for word against the official text.
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