Bill Text: NY S00345 | 2009-2010 | General Assembly | Introduced
Bill Title: Authorizes the imposition of monetary sanctions in any civil action or proceeding upon a written finding of the court that a party or attorney has brought a claim or employed procedures entirely without merit and in bad faith; authorizes an additional interest at 150% of the legal rate in cases where frivolous delaying tactics had been interposed to avoid entry of a money judgment; requires notice be given of the courts view that sanctions may be called for prior to imposition of sanctions; provides for appellate review of order granting sanctions; provides that an action shall not be deemed frivolous solely because a novel or unusual argument or principle of law was advanced.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2010-01-06 - REFERRED TO CODES [S00345 Detail]
Download: New_York-2009-S00345-Introduced.html
S T A T E O F N E W Y O R K ________________________________________________________________________ 345 2009-2010 Regular Sessions I N S E N A T E (PREFILED) January 7, 2009 ___________ Introduced by Sen. KRUGER -- read twice and ordered printed, and when printed to be committed to the Committee on Codes AN ACT to amend the civil practice law and rules, in relation to expenses, penalties and additional interest for frivolous actions or procedures and to repeal certain provisions of such law relating ther- eto THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: 1 Section 1. Section 8303-a of the civil practice law and rules is 2 REPEALED and a new section 8303-a is added to read as follows: 3 S 8303-A. EXPENSES, PENALTIES AND ADDITIONAL INTEREST FOR FRIVOLOUS 4 ACTION OR PROCEDURE. (A) IF IN A CIVIL ACTION OR PROCEEDING, A CLAIM IS 5 COMMENCED OR CONTINUED BY A PLAINTIFF, OR A COUNTERCLAIM, DEFENSE, CROSS 6 CLAIM OR THIRD-PARTY CLAIM IS COMMENCED OR CONTINUED BY A DEFENDANT, OR 7 AN APPLICATION, A MOTION OR CROSS MOTION FOR AN ORDER IS MADE OR CONTIN- 8 UED, THAT IS FOUND BY THE COURT AT ANY TIME DURING THE PROCEEDINGS OR 9 UPON JUDGMENT TO BE FRIVOLOUS, THE COURT SHALL AWARD EXPENSES TO ANY 10 PARTY ADVERSELY AFFECTED BY THE FRIVOLOUS CONDUCT. 11 (B) FOR PURPOSES OF THIS SECTION: 12 (I) "ACTION OR PROCEDURE" INCLUDES, BUT IS NOT LIMITED TO, THE MAKING 13 OR OPPOSING OF AN APPLICATION OR A MOTION, INCLUDING A MOTION FOR SANC- 14 TION PURSUANT TO THIS SECTION OR THE ASSERTION OF A CLAIM, COUNTERCLAIM, 15 DEFENSE, CROSS CLAIM OR THIRD-PARTY CLAIM. 16 (II) "FRIVOLOUS" MEANS ENTIRELY WITHOUT MERIT AND NOT ADVANCED IN GOOD 17 FAITH OR SOLELY INTENDED TO HARASS OR MALICIOUSLY INJURE ANOTHER. 18 (III) "EXPENSES" MEANS THE LEGAL EXPENSES INCURRED BY A PARTY DIRECTLY 19 ATTRIBUTABLE TO A FRIVOLOUS ACTION OR PROCEDURE, INCLUDING REASONABLE 20 ATTORNEY'S FEES AND DISBURSEMENTS. 21 (C) THE EXPENSES AWARDED UNDER SUBDIVISION (A) OF THIS SECTION SHALL 22 BE ASSESSED EITHER AGAINST THE PARTY BRINGING OR USING THE FRIVOLOUS 23 ACTION OR PROCEDURE OR AGAINST THE ATTORNEY FOR SUCH PARTY, OR AGAINST 24 BOTH, AS MAY BE DETERMINED BY THE COURT, BASED UPON THE CIRCUMSTANCES OF EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD03819-01-9 S. 345 2 1 THE CASE. SUCH EXPENSES SHALL BE IN ADDITION TO ANY OTHER AWARD GRANTED 2 TO ANY PARTY ADVERSELY AFFECTED BY THE FRIVOLOUS CONDUCT. 3 (D) IN ADDITION TO ANY EXPENSES AWARDED UNDER THIS SECTION, OR AS AN 4 ALTERNATIVE SANCTION, THE COURT MAY IMPOSE UPON THE PARTY BRINGING OR 5 USING A FRIVOLOUS ACTION OR PROCEDURE OR UPON THE ATTORNEY FOR SUCH 6 PARTY, OR UPON BOTH, A PENALTY NOT TO EXCEED TWO HUNDRED FIFTY DOLLARS, 7 TO BE AWARDED TO ANY PARTY ADVERSELY AFFECTED BY THE FRIVOLOUS CONDUCT. 8 (E) IN ADDITION TO ANY EXPENSES AWARDED OR PENALTY IMPOSED UNDER THIS 9 SECTION, OR AS AN ALTERNATIVE SANCTION, IF IN AN ACTION FOR THE RECOVERY 10 OF A SUM OF MONEY THE COURT FINDS THAT THE PARTY LIABLE FOR PAYMENT OF 11 SUCH SUM OR ATTORNEY FOR SUCH PARTY HAS BROUGHT ANY FRIVOLOUS ACTION OR 12 PROCEDURE IN ORDER TO DELAY JUDGMENT, THE COURT SHALL AWARD TO EACH 13 CLAIMANT AGAINST WHOM SUCH ACTION OR PROCEDURE WAS BROUGHT OR USED ADDI- 14 TIONAL INTEREST ON THE UNPAID PORTION OF SUCH SUM AT ONE HUNDRED FIFTY 15 PERCENT OF THE LEGAL RATE FROM THE DATE WHEN THE SUM WAS DUE TO THE 16 CLAIMANT, WHICH DATE SHALL BE STATED IN THE AWARD, UNTIL THE SUM IS PAID 17 IN FULL. 18 (F) AN AWARD OF ANY EXPENSES OR ADDITIONAL INTEREST OR THE IMPOSITION 19 OF ANY PENALTY UNDER THE PROVISIONS OF THIS SECTION SHALL BE MADE ONLY 20 UPON MOTION OF ANY PARTY ADDRESSED TO THE JUDGE BEFORE WHOM THE FRIVO- 21 LOUS ACTION OR PROCEDURE PROCEEDED, OR UPON THE COURT'S OWN MOTION. THE 22 COURT SHALL CONDUCT A HEARING ON THE MOTION TO DETERMINE WHETHER AN 23 AWARD OF EXPENSES OR ADDITIONAL INTEREST SHOULD BE GRANTED OR A PENALTY 24 IMPOSED, AND THE AMOUNT OF SUCH AWARD, ADDITIONAL INTEREST OR PENALTY. 25 (G) IF THE COURT DETERMINES FROM A PRELIMINARY CONSIDERATION OF THE 26 MOTION AND PRIOR TO A HEARING THAT THE ACTION OR PROCEDURE MOVED AGAINST 27 IS FRIVOLOUS, IT SHALL WHENEVER POSSIBLE GIVE NOTICE ON THE RECORD TO 28 THE PARTIES OF SUCH PRELIMINARY DETERMINATION. IF WITHIN TEN DAYS 29 FOLLOWING SUCH NOTICE THE PARTY OR ATTORNEY DISCONTINUES THE ACTION OR 30 PROCEDURE, NO EXPENSES OR ADDITIONAL INTEREST SHALL BE AWARDED OR PENAL- 31 TY IMPOSED; PROVIDED, HOWEVER, THAT NO NOTICE SHALL BE REQUIRED FOR THE 32 COURT AFTER A HEARING TO AWARD EXPENSES OR ADDITIONAL INTEREST OR TO 33 IMPOSE A PENALTY FOR A FRIVOLOUS ACTION OR PROCEDURE BASED UPON THE 34 SUBMISSION TO THE COURT OF A FALSE STATEMENT MADE UNDER OATH. 35 (H) AN ORDER AWARDING EXPENSES OR ADDITIONAL INTEREST OR IMPOSING A 36 PENALTY UNDER THIS SECTION SHALL BE IN WRITING, SHALL RECITE IN DETAIL 37 THE CONDUCT OR CIRCUMSTANCES JUSTIFYING THE ORDER AND SHALL SPECIFY IN 38 DETAIL THE METHOD BY WHICH THE AMOUNT OF THE AWARD WAS COMPUTED AND THE 39 CALCULATION THEREOF. 40 (I) ANY ORDER AWARDING EXPENSES OR ADDITIONAL INTEREST OR IMPOSING A 41 PENALTY UNDER THIS SECTION MAY BE APPEALED, AS A MATTER OF RIGHT, TO THE 42 APPROPRIATE APPELLATE COURT, WHICH SHALL REVIEW THE MATTER DE NOVO. 43 (J) NO FINDING SHALL BE MADE THAT ANY ACTION OR PROCEDURE WAS FRIVO- 44 LOUS SOLELY BECAUSE A NOVEL OR UNUSUAL ARGUMENT OR PRINCIPLE OF LAW WAS 45 ADVANCED IN SUPPORT THEREOF. 46 (K) THIS SECTION SHALL PROVIDE THE EXCLUSIVE REMEDY FOR A FRIVOLOUS 47 ACTION OR PROCEDURE. HOWEVER SUCH REMEDY SHALL NOT BE DEEMED TO PRECLUDE 48 AN ACTION AUTHORIZED PURSUANT TO THIS CHAPTER OR AN ACTION FOR MALICIOUS 49 PROSECUTION OR ABUSE OF PROCESS. 50 (L) ALL PRECEDING PROVISIONS OF THIS SECTION SHALL NOT APPLY TO: 51 (I) PROCEEDINGS IN A SMALL CLAIMS PART OF ANY COURT; 52 (II) LANDLORD-TENANT PROCEEDINGS; AND 53 (III) PROCEEDINGS IN THE FAMILY COURT COMMENCED UNDER ARTICLE THREE, 54 SEVEN, EIGHT OR TEN OF THE FAMILY COURT ACT. S. 345 3 1 S 2. This act shall take effect immediately and shall apply to an 2 action or proceeding commenced on or after the effective date of this 3 act.