Commercial Division Blog

Current Developments in the Commercial Divisions of the
New York State Courts by Schlam Stone & Dolan LLP
Posted: April 14, 2017

Full Amount of Defense Costs in Underlying Action Recoverable as Damages for Wrongful Attachment

On April 11, 2017, the First Department issued a decision in Citibank, N.A. v. Keenan Powers & Andrews PC, 2017 NY Slip Op. 02766, holding that a plaintiff was liable for the full cost of the defense of an action as damages for a wrongful attachment, explaining:

Secure Title is entitled to the damages it suffered as a result of the wrongful attachment. A finding of fault is not required to recover damages under this provision, as plaintiffs are strictly liable for the damages they caused. Under the circumstances, we find that the full amount of defense costs incurred by Secure Title in the underlying litigation was recoverable as damages for plaintiffs’ wrongful attachment under CPLR 6212(e).

(Internal quotations and citations omitted) (emphasis added).

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