NORTH FORK BANK et al., Respondents, v COHEN & KRASSNER, Appellant. Index 106002/05, 44 A.D.3d 375

Summary

The plaintiffs alleged that, inter alia, the law firm prepared an opinion letter and corporate resolution misrepresenting the borrower's authority to enter into a mortgage transaction, and that defendant knew such letter and resolution were false. The appellate court found that the plaintiffs' allegations were sufficient to state a cause of action for fraud. However, the claim was viable only insofar as asserted by the assignee, to whom the lender assigned all of its right, title, and interest in and to the mortgage. While the lender did not have a claim for fraud, it did have a claim for indemnification and or contribution of any pre-assignment sums that were paid to it by the borrower and were recovered by the assignee in its pending action to void the mortgage. The assignee, which was not a party to the borrower's action and, therefore, could not be compelled to reimburse the borrower for any mortgage payments it made as a result of the false opinion letter, did not have a cause of ...