The statute, which has been with us in one form or another for more than 800 years does not mention “egregious” nor “chronic” nor a “pattern of delinquent behavior.” 487 is handled differently in the First Department, and in the other Departments, there appears to be a lower threshold for its application. Here in Gelwan v Youni Gems Corp. 2017 NY Slip Op 05187
Decided on June 27, 2017 Appellate Division, First Department , as so often is found, the AD determined that there was no sufficiently egregious conduct.
“Order, Supreme Court, New York County (Manuel J. Mendez, J.), entered March 19, 2015, which, to the extent appealed from as limited by the briefs, granted plaintiff’s motion to dismiss defendants’ counterclaims, unanimously affirmed, without costs. Order, same court and Justice, entered August 12, 2014, which, to the extent appealed from, directed the parties to proceed to arbitration before the American Arbitration Association (AAA) of the first, sixth, seventh, eighth, and ninth causes of action, which were severed and dismissed from the action, unanimously modified, on the law, to dismiss, sever, and refer to arbitration before AAA the part of the eighth cause of action, which seeks a charging lien, addressed to fees covered by the retainer agreement, and to reinstate the sixth cause of action, which seeks an account stated, and otherwise affirmed, without costs.
Plaintiff seeks to recover legal fees and costs relating to his successful representation of defendants in an action involving a joint venture enterprise called Bassco Creations, pursuant to a contingency fee retainer agreement that contained an arbitration provision, and for work performed outside of the retainer agreement.
The motion court correctly found that defendants’ counterclaims do not allege conduct sufficiently egregious to support a Judiciary Law § 487 claim (see Kaminsky v Herrick, Feinstein LLP, 59 AD3d 1, 13 [1st Dept 2008], lv denied 12 NY3d 715 ).”