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Pleadings Struck and Fees Awarded Due to “Willful and Contemptuous” Conduct: Carnegie Assoc., LTD. v Miller

Posted in Alternative Dispute Resolution, CPLR 3126, Justice Lowe, Richard B. III, Mediation, Motion to Strike, New York, Sanctions, Willful and Contemptuous

In an October 19, 2010, decision by Justice Lowe in connection with plaintiff-insurance consultant’s action against defendant-founding shareholder alleging disloyal and unlawful conduct, and on defendant’s motion for sanctions under CPLR 3126, the court granted defendant’s motion, finding that plaintiff’s past examples of “unnecessary and perhaps egregious delay” for which the court already had imposed sanctions, coupled with plaintiff’s most recent failure to make its principals available for a court-ordered mediation and to submit a mediation statement, constituted “willful and contemptuous” conduct. Accordingly, the court dismissed the complaint with costs and disbursements to defendant, struck plaintiff’s reply to defendant’s counterclaims, and ordered plaintiff to “pay for the entirety of defendant’s fees and costs incurred in connection with the aborted mediation process.”

 

Carnegie Assoc., LTD. v Miller, Sup Ct, NY County, Oct. 19, 2010, Lowe, J, index No. 600109/08