Melissa Young (Associate-New York, NY) and Joseph Francoeur (Partner-New York, NY) recently achieved early dismissal of fraud and negligence claims filed against a title company that had arranged a closing for a mortgage loan and transfer of partial ownership in residential premises located in Queens, New York. The plaintiff alleged she was the sole owner of the transferred premises for 30+ years prior to the closing, and that such premises had been free and clear of any encumbrances – until two of the co-defendants (private individuals / neighborhood acquaintances) allegedly impersonated the plaintiff at the closing, added themselves to the deed, took out a $500,000 mortgage in the plaintiff’s name, and absconded with the mortgage proceeds. Further, plaintiff alleged she did not attend the closing and never consented to take out a mortgage loan or transfer her property. The plaintiff filed a lawsuit against all parties involved in the closing, including the two alleged fraudsters, the mortgage lender, the closing agent who notarized the borrower’s signature at the closing, and the title company. Melissa and Joe argued that the title company did not owe a duty to the plaintiff as the title company was retained by the lender, not the plaintiff, and in the absence of fraud or conversion the title company could not be held liable for negligence. With respect to the fraud claims, Melissa and Joe further argued that the allegations of the proposed amended complaint were based purely on conjecture and speculation, and that such amended pleading was devoid of any facts to substantiate the plaintiff’s claims. The court agreed that both the complaint and the proposed amended complaint lacked sufficient factual allegations to support any causes of action against the title company and granted Melissa and Joe’s motion, while denying plaintiff’s cross-motion to amend.