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February 25, 2016- The NY Law Journal reports, “A condominium may sue to rescind a unit’s sale on the grounds the buyer did not disclose her intent to operate a business in it, even though the condo suffered no monetary damages, a panel of the Appellate Division, First Department, said Tuesday.
Acting Presiding Justice Peter Tom, writing for a unanimous panel, said allegations defendant Sonja Foerster had “hid her true intention” to operate a day care center at Battery Park City’s Soundings Condominium (280 Rector Place) were sufficient to support the rescission cause of action.
Tom said “fraud sufficient to support the rescission requires only a misrepresentation that induces a party to enter into a contract resulting in some detriment, and unlike a cause of action in damages on the same ground, proof of scienter and pecuniary loss is not needed,” citing D’Angelo v. Bob Hastings Oldsmobile, Inc., 89 AD2d 785, 785 (4th Dept 1982), affd 59 NY2d 773 (1983).”