Court Awards Attorneys’ Fees After Plaintiff Maintained Claims Following Dismissal Of Identical Claims In Related Action

Posted: June 17, 2026 / Written by: Channing J. Turner, Samuel L. Butt, Ian Weiss, Thomas A. Kissane / Categories Court Rules/Procedures, Sanctions

Court Awards Attorneys’ Fees After Plaintiff Maintained Claims Following Dismissal Of Identical Claims In Related Action

On June 3, 2026, in Cortlandt St. Recovery Corp. v. TPG Capital Mgt., L.P., Index No. 651176/2017, Justice Robert R. Reed granted defendant Apax Partners, L.P.’s motion for sanctions in the form of attorneys’ fees.

Cortlandt Street Recovery Corp. had commenced this action asserting claims against multiple defendants—including Apax Partners, L.P.—based on the same transaction and theories of liability at issue in a related action then pending before the Commercial Division. In the related action, Apax had obtained summary judgment in March 2023, and the Appellate Division affirmed dismissal of the identical claims against Apax in March 2024. Apax thereafter brought these facts to the attention of plaintiff’s counsel and requested voluntary discontinuance of the claims in this action. Plaintiff nonetheless maintained its claims against Apax, ultimately filing for voluntary discontinuance only in April 2026. Apax moved for an award of reasonable attorneys’ fees as a sanction for frivolous conduct under 22 NYCRR 130-1.1. The Court explained:

Plaintiff was aware that its claims, as against Apax, potentially lacked merit as early as March of 2023, when Apax obtained summary judgment. At the latest, following the Appellate Division’s affirmation of dismissal of the claims in March of 2024, plaintiff was on notice that its claims against Apax would not withstand judicial scrutiny. . . . Plaintiff’s failure to withdraw its claims, following notice of dismissal of virtually identical claims in the related action, constitutes frivolous conduct (id.).

Contact the Commercial Division Blog Committee at commercialdivisionblog@schlamstone.com if you or a client have questions concerning frivolous conduct and sanctions under 22 NYCRR 130-1.1.