On May 21, 2020, the First Department issued a decision in China Dev. Indus. Bank v. Morgan Stanley & Co. Inc., 2020 NY Slip Op. 02987, holding that spoliation sanctions were not appropriate when a party preserved evidence as soon as it became aware that litigation was probable, explaining: Spoliation sanctions are available regardless of... Read more »
Blogs
Posts Categorized: Sanctions
Abuse of Process Claim Cannot be Based on Initiation of a Lawsuit
On January 31, 2020, Justice Cohen of the New York County Commercial Division issued a decision in O’Keeffe’s Inc. v. 400 Times Sq. Assoc., LLC, 2020 NY Slip Op. 30208(U), holding that an abuse of process claim could not be based on filing a lawsuit, explaining: Plaintiff seeks dismissal of Defendants’ counterclaim for abuse of... Read more »
Party Sanctioned for Falsifying Document
On January 17, 2020, Justice Borrok of the New York County Commercial Division issued a decision in Sprecase v. Tenreiro, 2020 NY Slip Op. 30155(U), sanctioning a party for falsifying a document, explaining: Mr. Stipa moves for sanctions pursuant to 22 NYCRR § 130-1.1. A court in a civil action is authorized to award the... Read more »
Discovery Sanction Reversed as Excessive
On January 14, 2020, the First Department issued a decision in Beach v. Touradji Capital Mgt., LP, 2020 NY Slip Op. 00230, reversing a discovery sanction as excessive, explaining: [A]ppellants contend that they committed no discovery violations, but even if they did, the court’s preclusion orders constituted an excessive sanction that deprived them of a... Read more »
That Court Signed OSC Does Not Mean that Motion Was Not Frivolous
On December 19, 2019, the First Department issued a decision in Matter of Citigroup Global Mkts., Inc. v. Fiorilla, 2019 NY Slip Op. 09107, holding that just because a judge signed an order to show cause does not mean that the motion was not frivolous, explaining: Fiorilla contends that Supreme Court’s signing of the order... Read more »
Counsel Sanctioned for Bringing Frivolous Action
On November 13, 2019, Justice Garguillo of the Suffolk County Commercial Division issued a decision in Doscher v. Meyer, 2019 NY Slip Op. 08171, sanctioning a litigant for bringing a frivolous action, explaining: We agree with the Supreme Court’s determination granting those branches of the respective motions of the Emerson defendants and the Greenberg Traurig... Read more »
Discovery Sanctions Denied for Failure to Explain in Detail Movant’s Efforts to Resolve the Dispute
On August 7, 2019, the Second Department issued a decision in Bronstein v. Charm City Hous., LLC, 2019 NY Slip Op. 06058, denying discovery sanctions because of the movant’s failure to explain in detail its efforts to resolve the dispute, explaining: Pursuant to 22 NYCRR 202.7(a) and (c), a motion relating to disclosure must be... Read more »
First Department Affirms Discovery Sanction
On February 26, 2019, the First Department issued a decision in Transasia Commodities Inv. Ltd. v. NewLead JMEG, LLC, 2019 NY Slip Op. 01361, affirming a discovery sanction, explaining: Defendants-appellants’ motion to vacate their default was properly denied. Defendants’s failure to timely pay a $15,000 court-ordered sanction may be deemed willful, as such recent conduct... Read more »
Party Sanctioned for Excessive Attorneys’ Eyes Only Designations
On October 18, 2018, Justice Masley of the New York County Commercial Division issued a decision in Callsome Solutions Inc. v. Google, Inc., 2018 NY Slip Op. 32716(U), sanctioning a party for making excessive attorneys’ eyes only confidentiality designations, explaining: Our court system is dependent on all parties engaged in litigation abiding by the rules of... Read more »
Litigant Sanctioned for Seeking to Arbitrate Previously-Litigated Claims
On October 9, 2018, Justice Schecter issued a decision in Gladstein v. Keane, 2018 NY Slip Op. 32562(U), sanctioning a litigant for seeking to arbitrate previously-litigated claims, explaining: It is well settled that the right to arbitration may be modified, waived or abandoned. The question of whether parties waived their right to arbitrate by their litigation-related... Read more »