New York Court of Appeals
ACA Financial Guaranty Corp., Appellant v. Goldman, Sachs & Co., Respondent, Defendants
May 7, 201525 N.Y.3d 1043
Summary
The New York Court of Appeals reversed the Appellate Division’s dismissal, holding that ACA Financial Guaranty sufficiently pleaded the justifiable reliance element for its fraud in inducement and fraudulent concealment claims, and remanded the case for further consideration. The court relied on longstanding New York precedent that a plaintiff must allege reasonable steps to protect itself, and found ACA’s email inquiries adequate. Justice Read dissented, arguing that ACA failed to take any reasonable protective steps and therefore lacked justifiable reliance.