Vanderbilt Group LLC v. Dormitory Authority

In Vanderbilt Group LLC v. Dormitory Authority (51 AD 3d 506, 859 N.Y.S.2d 6 [1st Dept 2008]) defendant sought to abrogate a contract based on plaintiff's criminal conviction for offering a false instrument for filing in connection with said contract. Defendant in Vanderbilt established that it was induced to enter into the contract by plaintiff's false statements. Vanderbilt at 507. In that case, the Appellate Division, First Department, relied on the fact that the defendant had investigated the plaintiff's false representations prior to forming the contract, and therefore, "if defendant was aware of and investigated plaintiff's false representations and chose nevertheless to execute the contract, it waived its defense of fraud and its contractual right to terminate the contract on the basis of the misrepresentations."