Justice Scarpula wades into a hotly contested multi-state, multi-party case to discuss, inter alia, Judiciary Law § 487. In SPV-LS LLC v Citron 2018 NY Slip Op 30681(U) April 16, 2018
Supreme Court, New York County Docket Number: 152783/2017 she deftly describes the reach of Judiciary Law § 487 in the first department:
“An attorney may be civilly liable for treble damages to an injured party for a violation of Judiciary Law §487 if the attorney is found to be “guilty of any deceit or collusion, or consents to any deceit or collusion, with intent to deceive the court or any party.” Judiciary Law §487(1). Allegations of the defendant attorney’s deceit “must be . stated with particularity.” Facebook, Inc. v DLA Piper LLP (US), 134 AD3d 610, 615 (1st Dept 2015) (internal citation omitted); Briarpatch Ltd., L.P. v Frankfurt Garbus Klein & Selz, P.C., 13 AD3d 296, 297 (1st Dept 2004).
Relief under this statute.”‘is not lightly given’ and requires a showing of ‘egregious conduct or a chronic and extreme pattern of behavior’ on the part of the defendant attorneys that caused damages.” Facebook, Inc., 134 AD3d at 615 citing Chowaiki & Co. Fine Art Ltd. v. Lacher, 115 A.D.3d 600, 601 (1st Dept 2014) and Savitt v. Greenberg Traurig, LLP, 126 A.D.3d 506, 507 (1st Dept 2015); see also Kaminsky v Herrick, Feinstein LLP, 59 AD3d 1, 13 (1st Dept 2008); Solow Mgt. Corp. v Seltzer, 18 AD3d 399, 399-400 (1st Dept 2005).
For conduct to be actionable under Judiciary Law §487, the alleged deceit must have either been directed at a court or have occurred during the pendency of a judicial proceeding. Costa/as v Amalfitano, 305 AD2d 202, 204 (1st Dept 2003); see also Jacobs v Kay, 50 AD3d 526, 527 (1st Dept 2008). Further, the “reach of [Judiciary Law §487] extends only to misconduct by attorneys in connection with proceedings before New York courts.” All. Network, LLC v Sidley Austin LLP, 43 Misc 3d 848, 864-65 (Sup Ct, NY County 2014) (internal citations omitted) citing Schertenleib v Traum, 589 F2d 1156, 1166 (2d Cir 1978); Weksler v. Kessler, 2008 WL 2563483 (Sup Ct, NY County 2008); S. Blvd. Sound, Inc. v Felix Storch, Inc., 165 Misc 2d 341, 344 (Civ Ct, NY County
1995), affd as mod, 167 Misc 2d 731 (App Term, 1st Dept 1996) Accord A.R.K. Patent Intern., LLC v Levy, 50 Misc 3d 1204(A) (Sup Ct, Monroe County 2014), affd sub nom. A.R.K. Patent Intern., L.L.C. v Levy, 134 AD3d 1460 (4th Dept 2015); Kaye Scholer LLP v CNA Holdings, Inc., 2010 WL 1779917, at* 1 (SDNY 2010); Cindy Royce Creations, Ltd. v Simmons & Simmons, 1993 WL 288291, at *5 (SDNY 1993); Nardella v Braff, 621 F Supp 1170, 1172 (SDNY 1985). But see Cinao v.
Reers, 27 Misc 3d 195 (Sup Ct, Kings County 2010). “