In J.E. Morgan Knitting Mills, Inc. v. Reeves Bros., Inc. (243 AD2d 422 [1st Dept 1997]), plaintiffs sued in contract and in tort alleging that certain representations made in their contract documents were false. The First Department affirmed the lower court's dismissal of the fraud claim for failure to state a cause of action: Plaintiffs' cause of action for fraud, which alleges that defendants knew at the time of contract execution that their warranty therein against undisclosed liabilities burdening the property was false, was properly dismissed as duplicative of plaintiffs' cause of action for breach of contract. The fraud alleged is based on the same facts as underlie the contract claim and is not collateral to the contract and no damages are alleged that would not be recoverable under a contract measure of damages (id. at 423).