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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
CourtAppellate Division, First Department
DecidedNovember 5, 2026
Citation2026 NY Slip Op 06543
Area of lawContracts and Commercial
WeekWeek ending November 7, 2026
Official textOfficial decision: 2026 NY Slip Op 06543
Publication statusSlip opinions are uncorrected and subject to revision before publication in the Official Reports.
Source feedNew York slip opinion page
Law Watch record id1833

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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Published November 5, 2026. Updated November 5, 2026.