Debt Broker – Obtained Dismissal in Real Estate Financing Dispute

Represented a debt broker in a lawsuit arising from a guaranty executed in connection with a real estate development project. A third-party plaintiff asserted claims including fraudulent inducement, negligent misrepresentation, breach of fiduciary duty, indemnification and unjust enrichment, alleging he was misled into signing the guaranty. Herrick secured dismissal of all claims, with the court finding that the plaintiff failed to establish justifiable reliance, did not satisfy New York’s heightened pleading standards for fraud-based claims and could not establish personal jurisdiction over the defendant. The court further held that the defendant, as a non-party to the guaranty, was not bound by the agreement’s forum-selection clause.