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Smart Summary

Factual and Procedural Background

The instant action arises from the 1969 adoption of the infant plaintiff, Sandra Del Vecchio, by Helen and Anthony Del Vecchio. After the adoption, the Del Vecchios discovered that Sandra was mentally retarded, a condition allegedly caused by complications during her natural mother's pregnancy and birth. In 1982, Helen and Anthony Del Vecchio, individually and on behalf of Sandra, initiated this lawsuit against, among others, the County of Nassau and related social services entities. The complaint asserted four causes of action, including constructive and actual fraud. The infant plaintiff sought recovery based on constructive fraud, while the adult plaintiffs sought recovery on both fraud causes of action.

The defendants moved for summary judgment to dismiss the complaint, arguing, among other grounds, that the Statute of Limitations had expired and that the complaint failed to state a cause of action. The trial court granted dismissal on two causes of action based on the Statute of Limitations but denied dismissal of the actual and constructive fraud claims against the County defendants, including on the basis that the infant plaintiff’s infancy tolled the Statute of Limitations.

Legal Issues Presented

  1. Whether the causes of action for actual and constructive fraud asserted against the County defendants were barred by the Statute of Limitations.
  2. Whether the infant plaintiff’s cause of action for constructive fraud stated a valid claim against the County defendants.
  3. Whether the infant plaintiff’s infancy tolled the Statute of Limitations applicable to her claims.
  4. Whether equitable estoppel barred the County defendants from asserting the Statute of Limitations defense.

Arguments of the Parties

The opinion does not contain a detailed account of the parties' legal arguments.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Smith v. Sarkisian, 63 A.D.2d 780, affd 47 N.Y.2d 878 Statute of Limitations for actual fraud: six years from the act or two years from discovery, whichever is longer. Supported the court’s conclusion that a triable issue exists as to when the fraud was or should have been discovered, precluding summary dismissal.
Azoy v. Fowler, 57 A.D.2d 541 Timing of discovery of fraud is a mixed question of law and fact. Justified denying summary judgment since discovery timing required factual determination.
Lapis Enters. v. International Blimpie Corp., 84 A.D.2d 286, 291 Six-year Statute of Limitations governs constructive fraud, running from commission of the fraud. Supported the court’s recognition of the limitations period for constructive fraud claims.
Simcuski v Saeli, 44 N.Y.2d 442 Equitable estoppel may prevent defendants from asserting Statute of Limitations defense. Allowed the court to consider whether equitable estoppel barred the County defendants from relying on the limitations defense.
Brown v. Lockwood, 76 A.D.2d 721, 730-731 Elements required to establish constructive fraud and distinction from actual fraud regarding knowledge of falsity. Guided the court’s analysis that the infant plaintiff failed to allege necessary elements for constructive fraud against the County defendants.
Pitcher v Sutton, 238 App. Div. 291, affd 264 N.Y. 638 Constructive fraud does not require proof of actual knowledge of falsity by defendant. Clarified the standard for constructive fraud claims applied by the court.

Court's Reasoning and Analysis

The court affirmed the trial court’s refusal to dismiss the adult plaintiffs’ actual and constructive fraud claims against the County defendants, emphasizing that the six-year Statute of Limitations for actual fraud had expired but that the two-year discovery rule created a triable issue of fact as to when the fraud was or should have been discovered. Similarly, for constructive fraud, although governed by a six-year statute, the possibility of equitable estoppel raised factual questions precluding summary judgment.

Regarding the infant plaintiff’s constructive fraud claim, the court found it failed to state a cause of action because the County defendants made no representations to the infant plaintiff that caused injury. The court applied the established elements of constructive fraud, including the requirement of a fiduciary or confidential relationship, and concluded these were not met. Thus, dismissal of the infant plaintiff’s constructive fraud claim was warranted.

Holding and Implications

The court dismissed the appeal by certain defendants who were not aggrieved and modified the order to grant summary judgment dismissing the infant plaintiff’s constructive fraud cause of action against the County defendants.

The order was otherwise affirmed, maintaining the viability of the adult plaintiffs’ fraud claims against the County defendants for further proceedings. The decision directly affects the parties by narrowing the scope of claims but does not establish new precedent beyond applying existing principles regarding statutes of limitations, discovery rules, equitable estoppel, and the elements of constructive fraud.

SANDRA DEL VECCHIO, an Infant and Incompetent Person, by Her Adopti v. Parents and Duly Appointed Guardians, HELEN DEL VECCHIO et al., Respondents,

Appeal by the defendants Ralph G. Caso and Francis Purcell, dismissed, without costs or disbursements. These parties are not aggrieved by the order appealed from, since it dismissed the plaintiffs' complaint as against them (CPLR 5511).

Order modified, on the law, by deleting the provision thereof which denied that branch of the motion which was for summary judgment dismissing the first cause of action insofar as it is asserted against the County of Nassau, the Nassau County Department of Social Services and the Nassau County Board of Social Services, and substituting therefor a provision granting that branch of the motion to the extent that the first cause of action is dismissed insofar as it is asserted on behalf of the infant plaintiff against said defendants and is otherwise denied. As so modified, order affirmed insofar as appealed from by the said defendants, without costs or disbursements.

The instant action arises out of the adoption in 1969 of the infant plaintiff, Sandra Del Vecchio, by Helen and Anthony Del Vecchio, the adult plaintiffs. At some point following the adoption, the Del Vecchios discovered that Sandra was mentally retarded. The infant plaintiff's condition was allegedly caused by complications which occurred during her natural mother's pregnancy and her birth.

Helen and Anthony Del Vecchio, individually and on behalf of Sandra, instituted the instant action in 1982 against, inter alia, the appellants. The complaint asserted four separate causes of action against the appellants, including constructive fraud and actual fraud. The infant plaintiff sought recovery against the appellants based on the constructive fraud cause of action, and the adult plaintiffs sought recovery on, inter alia, both the constructive and actual fraud causes of action.

Following service of their answer, the appellants moved for summary judgment dismissing the complaint based, inter alia, on the ground that the Statute of Limitations had run and that it failed to state a cause of action. Special Term granted the motion with respect to two of the causes of action on Statute of Limitations grounds, but denied the branches of the motion which were to dismiss the causes of action for actual and constructive fraud insofar as they were asserted against the County of Nassau, the Nassau County Department of Social Services and the Nassau County Board of Social Services (hereinafter the county defendants). Special Term also denied that branch of the motion seeking to dismiss the causes of action brought on behalf of the infant plaintiff as against the county defendants on the ground that her infancy had tolled the applicable Statute of Limitations.

We affirm Special Term's order insofar as it refused to dismiss the adult plaintiffs' causes of action sounding in actual and constructive fraud insofar as they are asserted against the county defendants. A cause of action based upon actual fraud must be commenced six years from the date of the fraudulent act or two years from the date the plaintiff discovered the fraud, or could with reasonable diligence have discovered it, whichever is longer (see, CPLR 213; 203 [f]; Smith v. Sarkisian, 63 A.D.2d 780, affd 47 N.Y.2d 878). Generally, the question of when the plaintiff discovered, or should have discovered, the alleged fraud is a "mixed question of law and fact which should not be resolved summarily (see, Azoy v. Fowler, 57 A.D.2d 541). In the case at bar, the alleged fraudulent act occurred in 1969; thus, the six-year Statute of Limitations would preclude recovery for actual fraud. However, a triable issue of fact exists as to when Helen and Anthony Del Vecchio discovered, or should with reasonable diligence have discovered, the alleged fraud. Thus, the question of whether the actual fraud cause of action has been timely interposed after discovery of the alleged fraud, pursuant to the two-year Statute of Limitations, should not be resolved on the motion to dismiss. Similarly, while the constructive fraud cause of action is governed by a six-year Statute of Limitations which begins to run at the time of the commission of the fraud (see, CPLR 213; Lapis Enters. v. International Blimpie Corp., 84 A.D.2d 286, 291), a question of fact also exists as to whether the appellants should be equitably estopped from asserting the Statute of Limitations defense (see, Simcuski v Saeli, 44 N.Y.2d 442).

However, the infant plaintiff's cause of action for constructive fraud asserted against the appellants fails to state a cause of action and must be dismissed insofar as it is asserted against the county defendants (see, CPLR 3211 [a] [7]). In order to recover damages for constructive fraud, the following elements must be established: that (1) a representation was made, (2) the representation dealt with a material fact, (3) the representation was false, (4) the representation was made with the intent to make the other party rely upon it, (5) the other party did, in fact, rely on the representation without knowledge of its falsity, (6) injury resulted and (7) the parties are in a fiduciary or confidential relationship (see, Brown v. Lockwood, 76 A.D.2d 721, 730). However, unlike actual fraud, in order to recover damages for constructive fraud, the plaintiff need not prove actual knowledge of the falsity of the representation by the defendant (see, Brown v. Lockwood, supra, p 731; Pitcher v Sutton, 238 App. Div. 291, affd 264 N.Y. 638). In the case at bar, the appellants made no representations, false or otherwise, to the infant plaintiff which resulted in injury. Accordingly, her cause of action to recover damages for constructive fraud must be dismissed. Mollen, P.J., Lazer, Kunzeman and Kooper, JJ., concur.

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DEL VECCHIO v. NASSAU COUNTY
(Mar 10, 1986)