Obolewicz v. CRP/Extell Parcel 1

NEW YORK COUNTY
Contracts

New York Law Journal

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Justice Anil Singh

Obolewicz, the plaintiff, is the owner of a residential condo unit and the Extell defendants are the building's sponsor and developer. The parties in 2007 executed an option contract for Obolewicz to purchase the condo and eventually closed the sale in 2009. Obolewicz argued that when she first visited the building to view available units, she stated she wanted a quiet apartment with an unobstructed view, but alleged that noise and odors disturbed her peace and prevented her from opening her windows. She alleged fraudulent misrepresentation and negligent misrepresentation, the elements of which included the existence of a special privity-like relationship imposing a duty on defendant to impart correct information to plaintiff, that the information was incorrect, and reasonable reliance on the information. The court rejected Obolewicz's argument, finding the plain language of the option agreement made it clear the allegedly fraudulent misrepresentations were not related to activity separate and apart from that contract, but instead constituted acts the agreement specifically banned Obolewicz from relying on.

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