Judiciary Law 487 is an attorney related statute that derives from one of the oldest English laws, carried over to New York statutes. It is over 700 years old, in its earliest version. inBaker, Sanders, Barshay, Grossman, Fass, Muhlstock & Neuworth, LLC v Comprehensive
Mental Assessment & Medical Care, P.C.; 2011 NY Slip Op 31385(U) ;May 10, 2011
Sup Ct, Nassau County ;Docket Number: 016008/2007; Judge: Ira B. . Warshawsky defines the elements of JL 487 and then finds that a cause of action is stated.
Judiciary Law 487(1) permits injured third parties to recover treble damages when an attorney engages in ‘ any deceit or collusion or consents to any deceit or collusion, with intent to deceive the court or any par. ‘ " The plaintiffs must show evidence of either intent by the defendants to deceive or a chronic and extreme pattern of legal delinquency which proximately caused their damages. Connell v Kerson, 291 AD2d 386 (2 Dept. 2002). "Moreover, the alleged deceit when not directed at a court must occur during a pending judicial proceeding (citations omitted). Elmowitz v McCormick Dunne & Foley, 30 Misc 3d 1209 (A) (Supreme Court New York County 2010), citing Jacobs v Kay, 50 AD3d 526, 527 (1 Dept. 2008); Costalas v Amalfitano, 305 AD2d 202 203-204 (1 st Dept. 2003).
Contrary to Barshay s allegations, the defendants have adequately stated a claim against him to recover under Judiciary Law 487. The defendants have alleged that "(t)he partners failed to provide business records and accounting(s); the partners failed to hand over funds collected on settled cases; (plaintiffs) failed to make timely court and arbitration filings.Checks payable to defendants (were placed) in partner accounts; settlement checks issued by insurance carriers. . . were deposited into Partnership s accounts; plaintiffs compromised defendants ‘ causes of actions , particular in a bulk settlement with AIU Insurance Company, and a bulk settlement with GEICO Insurance Company; (P)artners took possession of the settlement funds from both Bulk
Settlements;" and that " (P)artners failed to inform defendants of the receipt of funds resulting from both Bulk Settlements. . . (and) deposited settlement funds from Bulk Settlements into (plaintiffs) bank accounts." The defendants have alleged that Sanders & Grossman, P. , Baker Barshay, LLP and the Partnership as well as all of the additional defendants improperly represented to adversaries as well as the courts in the course of judicial proceedings related to their no-fault claims that they represented them and that they had the authority to settle their claims when they did not and that they settled those claims at a significant discounted rate causing them substantial damage. A claim pursuant to Judiciary Law 9 487 has clearly been stated."