JUDICIARY LAW 487 APPLIES ONLY TO MISREPRESENTATIONS BY AN ATTORNEY WHICH ARE MADE IN THE COURSE OF A LAWSUIT; THE STATUTE DOES NOT APPLY WHERE, AS HERE, THE ALLEGED MISREPRESENTATIONS WERE MADE TO INDUCE PLAINTIFFS TO START A MERITLESS LAWSUIT TO GENERATE A LEGAL FEE (CT APP).

The Court of Appeals, in a full-fledged opinion by Judge DiFiore, over an extensive dissenting opinion, determined the Judiciary Law 487 cause of action, based upon the allegation plaintiffs’ attorneys (defendants) deceitfully induced plaintiffs to bring a meritless lawsuit in order to generate a legal fee, was properly dismissed. A Judiciary Law 487 cause of action lies only if misrepresentations are made in the course of litigation, as opposed to, as here, before litigation is commenced:

Here … defendants established prima facie entitlement to judgment as a matter of law on the Judiciary Law § 487 (1) claim by demonstrating that plaintiffs failed to allege that defendants engaged in deceit or collusion during the course of the underlying federal intellectual property lawsuit … . In response, plaintiffs failed to satisfy their burden to establish material, triable issues of fact … . The affidavits plaintiffs submitted in opposition to summary judgment did not allege that defendants committed any acts of deceit or collusion during the pendency of the underlying federal lawsuit. To the extent defendants were alleged to have made deceitful statements, plaintiffs’ allegation that defendants induced them to file a meritless lawsuit based on misleading legal advice preceding commencement of the lawsuit is not meaningfully distinguishable from the conduct we deemed insufficient to state a viable attorney deceit claim in Looff (97 NY at 482). The statute does not encompass the filing of a pleading or brief containing nonmeritorious legal arguments, as such statements cannot support a claim under the statute … . Similarly, even assuming it constituted deceit or collusion, defendants’ alleged months-long delay in informing plaintiffs that their federal lawsuit had been dismissed occurred after the litigation had ended and therefore falls outside the scope of Judiciary Law § 487 (1). Thus, plaintiffs’ Judiciary Law § 487 cause of action was properly dismissed. Bill Birds, Inc. v Stein Law Firm, P.C., 2020 NY Slip Op 02125, CtApp 3-31-20