A New York Appellate Court Reinstated Fraud Claims Against Madison Realty Capital

On April 29, 2026, the Appellate Division, Second Department unanimously reversed the dismissal of this case and reinstated claims for fraud, breach of contract, and breach of the covenant of good faith and fair dealing against Madison Realty Capital, L.P. and its principals.

The Court ordered: "the order is reversed insofar as appealed from, on the law, with costs, and the defendants motion pursuant to CPLR 3211(a) to dismiss the complaint is denied."

Decided unanimously by four justices: Presiding Justice Cheryl E. Chambers, Justice Deborah A. Dowling, Justice James P. McCormack, and Justice Susan Quirk. The Court held the defendants remaining contentions to be "without merit."

Karp v. Madison Realty Capital, L.P., 2026 NY Slip Op 02637 (App. Div., 2d Dept., Apr. 29, 2026).