New York Attorneys JHA handles range the gamut of complex financial and commercial litigation and arbitration, including securities, RICO, corporate and contract disputes, credit default swaps, derivatives, and class, mass, and derivative actions. The firm also represents law firms in major disputes.

Commercial Litigation and Arbitration

New York Attorneys JHA handles range the gamut of complex financial and commercial litigation and arbitration, including securities, RICO, corporate and contract disputes, credit default swaps, derivatives, and class, mass, and derivative actions. The firm also represents law firms in major disputes.
Commercial Litigation and Arbitration

Greg Joseph

Rule 11 and Inherent Power Sanctions for (1) Filing Brief Generated by AI (ChatGPT) Filled with Fake and Nonsensical Cases, (2) Failing to Confirm the Authenticity of the Cases, (3) Failing to Make Any Inquiry to Determine If the Assertions of Law Were Correct, (4) Advocating for The Fake Cases After Being Informed by Adversary That the Cases Could Not Be Found, (5) Lying to the Court About Why Continuance Needed and Role of AI in Research — Conscious Avoidance Sufficient to Prove Knowledge —$5,000 Non-Compensatory Penalty Assessed — Offenders Must Notify Client and Judges Wrongly Named in the Fake Cases—“Nothing Inherently Improper About Using a Reliable Artificial Intelligence Tool for Assistance”

Mata v. Avianca, Inc., 2023 U.S. Dist. LEXIS 108263 (S.D.N.Y. June 22, 2023) Rule 11 and Inherent Power Sanctions for (1) Filing Brief Generated by AI (ChatGPT) Filled with Fake and Nonsensical Cases, (2) Failing to Confirm the Authenticity of …
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Inherent Power Sanctions — Clear-and-Convincing-Evidence Required (10th Circuit) — Evidence Rules Do Not Govern Sanctions Proceedings — Civil Rules Do Not Recognize a “Motion to Reconsider” As Opposed to Rule 59(e) Motion to Alter or Amend a Judgment, Which Requires “Manifest Error” or New Evidence — Abuse of Discretion Review (But Invocation of Inherent Power Is Reviewed De Novo (See Dissent)) — For Reversal, Appellate Court Must Be “Firmly Convinced … the District Court Erred in Finding … It Was Highly Probable That the [Offender] Acted in Bad Faith“ — Extrajudicial Misconduct: Witness Intimidation by Commencing Multimillion Dollar Arbitration Against Witness — Inherent Power Sanction Within District Court’s Jurisdiction When Acting Pursuant to a Strictly Limited Remand (Dissent Disagrees) — Sanctions for Arbitration Conduct Permissible Where Arbitration Threatened Court’s Proceedings — Permissible for Court to Evaluate Frivolousness of Claims in the Arbitration — Frivolousness, Alone, May Not Be Enough — Due Process Satisfied by Show-Cause Order — Monetary Award Was Civil Because It Was Limited to Fees Incurred in Federal Court Seeking Sanctions, Not Conduct in Arbitration— Fact Witness Intimidation Fails Does Not Negate Causation of Costs Incurred in Pursuing Sanctions — Failure to Reduce Requested Fees Does Not Mean Court Failed to Exercise Discretion

Becker v. Ute Indian Tribe, 2023 U.S. App. LEXIS 20430 (10th Cir. Aug. 8, 2023) ORDER AND JUDGMENT* *1 Lynn Becker and the Ute Indian Tribe have been mired in litigation for nearly two decades. Mr. Becker’s relationship with…
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Rule 37 Sanction of Dismissal for Repeatedly Obstructing 30(b)(6) Deposition, Flouting Court Orders: “[A] Splash of Proper Conduct Amidst an Expansive Sea of Impropriety Is Insufficient to Save [a Party] from Sanctions” — CFPB Enforcement Action Dismissed

Consumer Fin’l Prot. Bur. v. Brown, 69 F.4th 1321 (11th Cir. 2023); The Consumer Financial Protection Bureau (“CFPB”) is not exempt from the rules of discovery. Nonetheless, the CFPB tried to bring a wide-ranging civil lawsuit against 18 defendants without…
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Rule 37(c)(1) Sanctions — Award of Excess Expenses Incurred in Deposing Late-Disclosed Expert Witness on Eve of Trial — Argument That Late Disclosure = Harmless Error Because Same Expenses Would Have Been Incurred Earlier Rejected — Late Disclosure “Made The Matter Much More Urgent, Time Consuming And Expensive As Trial Loomed Less Than A Month Away”

McDowell v. Livonia Hotel Bus., Inc., 2023 U.S. App. LEXIS 17819 (6th Cir. July 11, 2023): This civil suit arises out of an armed robbery that took place at a motel in Livonia, Michigan. Plaintiffs, Raymond McDowell and Taj Dorsey,…
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Rule 37 and Inherent Power Sanctions – While Sanctions Are Reviewed for Abuse of Discretion, District Court’s Invocation of Its Inherent Power Is Reviewed De Novo — Due Process Violated by Failure to Apprise Individuals that They Were Personally at Risk of Monetary Sanctions—That Sanctions Motion Sought Sanctions Against Corporation “Or Others” Insufficient — Post-Sanctions Opportunity to Be Heard Insufficient — Rule 37 Sanctions Must Be Both “Just” and “Related to the Particular ‘Claim’” — Factors Governing Litigation-Ending Sanctions (5th Circuit) — 6. What Is a “Litigation-Ending” Sanction Is A “Practical” Determination and Broader Than Dismissal with Prejudice and Default Judgment —6. What Is a “Litigation-Ending” Sanction Is A “Practical” Determination and Broader Than Dismissal with Prejudice and Default Judgment — What Is a “Litigation-Ending” Sanction Is A “Practical” Determination and Broader Than Dismissal with Prejudice and Default Judgment — Recklessness Insufficient for Case-Ending Sanction (Bad Faith Required) — Rule 37 Authorizes Joint-and-Several Liability on a Party and Its Agents —Attorney’s Fee Award Must be Calculated Using the Lodestar Process

CEATS, Inc. v. TicketNetwork, Inc., 71 F.4th 413 (5th Cir. 2023):  Opinion This consolidated appeal concerns the injunctive and monetary sanctions that the district court imposed after a company and three individuals violated the court’s protective order. The company and…
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Rule 11 — Improper Purpose — Even If Paper Filed Not Only to Vindicate Rights But Also for Some Other Purpose, Sanctions Inappropriate Unless the Other Purpose Is Undertaken in Bad Faith and Is So Excessive As to Eliminate A Proper Purpose

Columbia Gas Transmission, LLC v. Haas, 2023 U.S. App. LEXIS 19300 (4th Cir. July 27, 2023) (unpublished) PER CURIAM: *1 Affirmed by unpublished per curiam opinion. Unpublished opinions are not binding precedent in this circuit. In 2017, Columbia Gas Transmission…
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Sanctions: § 1927 Authorizes Only Fees Incurred “Because of” Sanctionable Conduct, Not Fees Merely Related to It — Where Responsive Brief Fails to Make Necessary Disclosure Necessitating Reply, All Costs Associated with Reply Are Awardable, Not Merely Portions Specifically Prompted by Improper Non-Disclosure — Party Appealing § 1927 Sanctions Bears Burden of Showing Error in Fee — Setting Fees Is A Matter of Rough Justice and Should Not Result in Second Major Litigation — Where Time Records Excusably Imprecise Due to Unawareness of Misconduct, Rough Estimate of Fees Allocable to Misconduct Suffices — Fees Reimbursed by Insurance Still “Incurred” Within, And Awardable under § 1927 — Law of The Case Doctrine Inapplicable, Even If Same Issue Involved, Where Different Legally Relevant Factors Are Under Consideration Or Facts Are Different

Chung v. Lamb, 73 F.4th 824 (10th Cir. 2023): After a prior remand to the district court, we review the propriety of that court’s revised award of attorney fees under 28 U.S.C. § 1927, which permits monetary sanction when…
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Spoliation Sanctions: Rule 37(e)(2)’s Intent-To-Deprive Standard Is The Same Bad Faith Standard Historically Applied In Pre- Rule 37 Spoliation Cases And Still Applied In Cases Of Non-Electronic Spoliation — Prejudice To The Defendant Need Not Be Shown Under Rule 37(b)(2) — Even Though Litigation Hold Issued, Bad Faith Reasonable Inferred From Failing To (i) Back Up Text Messages, (ii) Educate Recipients About Litigation Hold, (iii) Collect Cell Phone Data For 7 Months, And (iv) Suspend Policy Of Wiping Data — No Affirmative Act Is Required To Sustain A Finding Of Bad Faith Based On Circumstantial Evidence, Either Under Rule 37(e) Or Bad Faith Case Law

Skanska United States Civil Se. Inc. v. Bagelheads, Inc., 2023 U.S. App. LEXIS 19942 (11th Cir. Aug. 2, 2023): *1 Hurricane Sally hit Pensacola Bay with a vengeance in September 2020, and 28 barges moored in the Bay were not…
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Post-Judgment Sanctions — Circuit Split: District Court Lacks Jurisdiction Over Motion for § 1927 Sanctions Made After Appellate Mandate Issues (Appears to Require Motion Prior to Filing of Notice of Appeal) — Post-Mandate Motion Can Seem Like an Ambush of a Losing Party Prepared to Accept a Loss Without a Pending Sanctions Motion — In Accord With All Circuits: District Court Retains Jurisdiction To Entertain Motion To Impose Inherent Power Sanctions Made After Mandate Issues — When a Number of Other Circuits Reject a Circuit’s Position, and No Other Circuit Accepts It, The Interest in Avoiding Inter-Circuit Conflict May Justify Abandoning The Position

Feehan v. Evers, 2023 U.S. App. LEXIS 19901 (7th Cir. Aug. 2, 2023) (unpublished) ORDER On December 1, 2020, plaintiff-appellee William Feehan filed this suit in the United States District Court for the Eastern District of Wisconsin. The complaint sought …
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Recent Articles

RICO: Indirect Injury Unrecoverable — Indirect Purchaser Rule Imported from Antitrust

Rule 11 Sanctions: (1) Improper Purpose of Harassment Reasonably Determined Based on Past Tactics (25 Lawsuits, 14 Ethics Complaints, and 150 FOIA Requests) As Well As Present Behavior — (2) Hearings Are Not Only Not Required to Satisfy Due Process But, If The Record Is Otherwise Adequate, Are Affirmatively Discouraged

RICO and Probate Exception to Federal Jurisdiction: Federal Jurisdiction over RICO Claim Not Barred by Probate Exception Even If the Federal Judgment May Be Binding on the Probate Proceedings (Or Vice Versa) — Calculating Damages Based on Diminution of Value of Estate ≠ Administration of the Estate — Doesn’t Matter If RICO Misconduct Includes Defendants’ Actions with Respect to The Estate

RICO: No Causation Where Harm Flowed Several Steps After the Fraudulent Acts — RICO Causation Same As Antitrust Causation

Sanctions vs. Automatic Stay: Imposition of Sanctions (Here, Inherent Power Sanctions) Is Subject to the Police Power Exception to the Automatic Stay in Bankruptcy

The Word “Include” May Be A Word of Limitation As Opposed to a Word of Enlargement, Depending on the Context

RICO — Pleading Conspiracy — Plaintiffs Must Plausibly Allege That the Defendants Knowingly Joined the RICO Conspiracy — Sparse Allegations of Knowledge of Fraud Due to Participation in a Commercial Transaction Insufficient to State RICO Conspiracy Claim Where Allegations Not Inconsistent with Ordinary Commercial Behavior — While Knowledge May Be Pled “Generally” under Rule 9(b), It Cannot Be Alleged Conclusorily and Must Satisfy the Twiqbal Plausibility Standard

Depositions: Improper to Object to Form to Straightforward Questions (Not Compound, Vague, Leading or Speculative) — Lack of Foundation Objection Improper in 30(b)(6) Deposition — Improper to “Educate” Witness During Breaks of 30(b)(6) Deposition Through Witness Calls to Knowledgeable Corporate Colleagues — Magistrate Judge May Impose Financial Sanctions

Spoliation/Sanctions: “A Party Does Not Spoliate Evidence When, Without Notice Of The Evidence’s Potential Relevance, It Destroys The Evidence According To Its Policy Or In The Normal Course Of Its Business” (Good Quote)

RICO: Fraud on Government Entities Causing Plaintiffs to Pay More for Inmate Calls Actionable on Bridge v. Phoenix Bond Analysis — Fact That Governments Had Separate Injuries As Part of the Scheme (from Reduced Commissions) Irrelevant — Plaintiffs’ Injuries Not Derivative of Governments’ — The Fraud on the Governments Was Not Too Distinct From Plaintiffs’ Injuries But Rather Necessary to Injure Plaintiffs — No Risk of Duplicative Recoveries and No Plaintiff Better Situated to Sue for Plaintiffs’ Injuries

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New York Attorneys JHA handles range the gamut of complex financial and commercial litigation and arbitration, including securities, RICO, corporate and contract disputes, credit default swaps, derivatives, and class, mass, and derivative actions. The firm also represents law firms in major disputes.
New York Attorneys JHA handles range the gamut of complex financial and commercial litigation and arbitration, including securities, RICO, corporate and contract disputes, credit default swaps, derivatives, and class, mass, and derivative actions. The firm also represents law firms in major disputes.

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