'Big Boy' Or Not? Disclaimers Of Reliance In NY

Law360, New York (October 7, 2010, 2:26 PM EDT) -- Courts in New York routinely dismiss complaints alleging fraud in connection with transactions between sophisticated parties where the parties have agreed, pre-dispute, to a specific disclaimer of reliance on any misrepresentations or omissions by either party in the course of negotiating or entering into the transaction.

Such disclaimers are commonly known as “Big Boy” provisions. (See generally Brian S. Fraser and Tamala E. Newbold, “Who’s a Big Boy? Non-Reliance Provisions And Claims Of Insider Trading In Securities And Non-Securities Markets.”) New York courts, however, will not...
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