A secured creditor brought an action as assignee of a court‑appointed receiver alleging fraudulent misrepresentation arising from the sale of a commercial property during receivership.
The defendant purchaser had secretly arranged to resell the property for a substantially higher price and directed title to the ultimate buyer while providing transaction documents that falsely described that buyer as the purchaser under the receiver’s agreement of purchase and sale.
The defendant moved for summary judgment dismissing the claim.
The court held that although the defendant had no initial duty to disclose the flip transaction, the closing documents contained express misrepresentations and misleading statements that constituted fraudulent misrepresentation.
The motion was dismissed and liability was determined, with causation and damages to be addressed in subsequent proceedings.