"New Cases Show the Critical Importance of the Duty of Self-Protection" By Kevin Schlosser

Those attempting to obtain various remedies by claiming to be victims of fraudulent conduct have a very strict duty to act reasonably and prudently to protect themselves. This duty of self-protection is a theme that runs through many aspects relating to fraud, which I have chronicled often in this Blog.

Two new decisions by the Appellate Division, Second Department, give no credence to those trying to obtain some powerful remedies by claiming fraud because they did not adequately protect themselves. One decision, Holder v Folsom PL Realty, Inc., 2022 NY Slip Op 03890 (2d Dep’t Decided June 15, 2022), refused to allow a deed to be set aside based upon alleged fraudulent inducement. The other decision, Maynard v Smith, 2022 NY Slip Op 04017 (2d Dep’t Decided June 22, 2022), refused to rescind an agreement to arbitrate based upon a claim of unilateral mistake.

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