CBS Inc., Appellant, v. Ziff-Davis Publishing Co. et al., Respondents, 75 N.Y.2d 496

Summary

Plaintiff purchaser challenged the dismissal of its claim for breach of express warranty for failure to plead reliance in its contract action arising from its purchase of defendant sellers' consumer magazine businesses. The court modified the dismissal to eliminate the warranty claim from the dismissal. The court concluding that the reliance element in an express warranty action required plaintiff to plead that it relied on the express warranty as being a part of the bargain between the parties, not that it believed the truth of the warranted information. The court ruled that the required reliance element was established because plaintiff's purchase of the magazine businesses from defendants was based on defendants' express warranty as to the profitability of the businesses, even though plaintiff questioned the accuracy of the financial information which defendants warranted to be true. The court affirmed the remainder of the dismissal.