Commercial Division Blog

Current Developments in the Commercial Divisions of the
New York State Courts by Schlam Stone & Dolan LLP
Posted: March 28, 2016

Judiciary Law Section 487 Claim Should Be Brought in Action Where Alleged Misconduct Occurred

On March 15, 2016, the First Department issued a decision in Little Rest Twelve, Inc. v. Zajic, 2016 NY Slip Op. 01767, dismissing a Judiciary Law Section 487 claim because, among other things, it should not have been brought in a separate action, explaining:

In support of the claim alleging a violation of Judiciary Law ยง 487, the third-party complaint contains no nonconclusory allegations that the alleged misconduct was merely a means to the accomplishment of a larger fraudulent scheme greater in scope than the issues determined in the prior proceeding. Thus, the claim is not properly asserted in this action but would be appropriately raised in the still pending underlying action, where the alleged misconduct occurred.

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

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