Being “Overwhelmed by Paperwork” Is Not Fraud

Plaintiffs sued alleging fraud in connection with a deed transfer. Plaintiffs claimed that defendant induced the deed transfer by misrepresenting the nature of the documents. Plaintiffs claimed that they thought they were undertaking a short sale when they actually transferred the property outright. The lower court agreed.

In reversing, the Second Department held that plaintiffs alleged no fraud or misunderstanding of the contents of the papers they signed. “Instead, the plaintiffs contend that they were ‘overwhelmed by the paperwork but do not allege any facts that would suggest that they were prevented from reading the documents prior to signing them or that they were forced to sign.” “Thus, the plaintiffs failed to establish . . . that they were entitled to judgment as a matter of law on the causes of action alleging fraudulent inducement, unjust enrichment, and to quiet title.”

Holder v. Folsom PL Realty, Inc.