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ATTORNEY MISCONDUCT CLAIM UNDER JUDICIARY LAW 487 APPLIES ONLY TO COURT, NOT ARBITRATION, PROCEEDINGS.

The First Department noted that a Judiciary Law 487 claim against attorneys for misconduct does not apply to alleged misconduct in arbitration, as opposed to court, proceedings:

Plaintiff … failed to state a cause of action under Judiciary Law § 478, because the statute does not apply to attorney misconduct during an arbitral proceeding. The plain text of § 478 limits the statute’s application to conduct deceiving “the court or any party” … , and, because the statute has a criminal component, it must be interpreted narrowly … . Moreover, courts have held that the statute does not apply to conduct outside New York’s territorial borders or to administrative proceedings, observing that its purpose is to regulate the manner in which litigation is conducted before the courts of this State … .

In any event, plaintiff failed to allege the elements of a cause of action under the statute, i.e., intentional deceit and damages proximately caused by the deceit … .  The misconduct that plaintiff alleges is not “egregious” or “a chronic and extreme pattern of behavior” … and the allegations regarding scienter lack the requisite particularity … . Doscher v Mannatt, Phelps & Phillips, LLP, 2017 NY Slip Op 01973, 1st Dept 3-16-17

 

ATTORNEYS (ATTORNEY MISCONDUCT CLAIM UNDER JUDICIARY LAW 487  APPLIES ONLY TO COURT, NOT ARBITRATION, PROCEEDINGS)/JUDICIIARY LAW 487 (ATTORNEY MISCONDUCT CLAIM UNDER JUDICIARY LAW 487 APPLIES ONLY TO COURT, NOT ARBITRATION, PROCEEDINGS)/ARBITRATION (ATTORNEY MISCONDUCT, ATTORNEY MISCONDUCT CLAIM UNDER JUDICIARY LAW 487 APPLIES ONLY TO COURT, NOT ARBITRATION, PROCEEDINGS)

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