Priolo Communications, Inc. v. MCI Telecommunications Corp.
Court: Appellate Division of the Supreme Court of the State of New York; March 8, 1998; New York; State Appellate Court
MCI Telecommunications Corporation appeals a November 18, 1996 order from the Supreme Court, Richmond County, which denied its motion to dismiss a complaint alleging breach of contract, fraud, and conversion. The appellate court reverses the order and grants MCI's motion to dismiss the complaint. The appellate court finds that the plaintiff's claim for breach of contract is barred by the Statute of Frauds, as the agreement for customer procurement falls under General Obligations Law § 5-701(a)(10). The conversion claim is deemed redundant, merely restating the breach of contract claim without alleging a separate taking, which is not permissible under existing case law. While the court acknowledges that the fraud claim is a tort action, it is found to be fatally defective due to the plaintiff’s failure to plead specific facts regarding the alleged fraud, particularly the material misrepresentation that MCI never intended to fulfill its promise. This lack of specificity violates CPLR 3016(b). The decision is supported by concurrence from Justices Miller, O’Brien, Copertino, and McGinity.