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KNK ENTERPRISES, INC., Respondent, v. HARRIMAN ENTERPRISES, INC., et al., Appellants.

Ordered that the judgment is reversed, on the law, with costs, and the complaint is dismissed.

To prevail on a claim of fraud, a plaintiff must show that it actually relied on the purported fraudulent statements and that its reliance was reasonable or justifiable ( see Harris v Camilleri, 77 AD2d 861, 863). A party cannot claim reliance on a misrepresentation when he or she could have discovered the truth with due diligence ( see East 15360 Corp. v Provident Loan Socy. Of N.Y, 177 AD2d 280). Here, the plaintiff, who was represented by counsel, decided to proceed with the transaction, despite knowing that it had not received full information concerning the transaction; thus its reliance cannot be considered reasonable or justifiable.

In light of our determination, we need not address the parties' remaining contentions.

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KNK ENT. v. HARRIMAN ENT
(Oct 24, 2006)