Princes Point LLC v AKRF Eng'g, P.C.
2014 NY Slip Op 02688 [116 AD3d 574]
April 17, 2014
Appellate Division, First Department
Published by New York State Law Reporting Bureau pursuant to Judiciary Law § 431.
As corrected through Wednesday, May 28, 2014


Princes Point LLC, Appellant,
v
AKRF Engineering, P.C., Respondent, et al., Defendants.

[*1] Quinn Emanuel Urquhart & Sullivan, LLP, New York (Todd S. Anten of counsel), for appellant.

Seyfarth Shaw LLP, New York (Eddy Salcedo and Elizabeth D. Schrero of counsel), for respondent.

Order, Supreme Court, New York County (Charles E. Ramos, J.), entered November 28, 2012, which granted defendant AKRF Engineering, P.C.'s motion for summary judgment dismissing the complaint, unanimously affirmed, with costs.

In this action by plaintiff, a prospective buyer of real property that underwent environmental remediation performed by defendant engineering firm for the seller several years before plaintiff became a potential buyer, the complaint alleges, inter alia, causes of action for negligent misrepresentation and fraud. The cause of action for negligent misrepresentation was properly dismissed since the underlying relationship between the parties is neither "one of contract" nor one that is "so close as to be the functional equivalent of contractual privity" (see Ossining Union Free School Dist. v Anderson LaRocca Anderson, 73 NY2d 417, 419, 424 [1989]). The documents upon which plaintiff relies were prepared by defendant solely for the benefit of the seller and there is no evidence that defendant intended plaintiff to rely on the information (see Sykes v RFD Third Ave. 1 Assoc., LLC, 15 NY3d 370 [2010]). Additionally, as we held on a prior appeal, the contract for sale precluded plaintiff from relying on anything other than its own investigation and inspections of the property (110 AD3d 564 [1st Dept 2013]). Accordingly, plaintiff cannot claim reasonable reliance on any alleged misrepresentations. [*2]

Because plaintiff's reliance, if any, was unreasonable, its claim for fraud was also properly dismissed (see Duane Thomas LLC v 62 Thomas Partners, 300 AD2d 52 [1st Dept 2002], lv denied 100 NY2d 513 [2003]). Concur—Renwick, J.P., Moskowitz, DeGrasse, Manzanet-Daniels and Feinman, JJ.