Isaly v. Garde

Isaly v Garde 2024 NY Slip Op 34311(U) December 9, 2024 Supreme Court, New York County Docket Number: Index No. 160699/2018 Judge: James E. d'Auguste Cases posted with a "30000" identifier, i.e., 2013 NY Slip Op 30001(U), are republished from various New York State and local government sources, including the New York State Unified Court System's eCourts Service.

This opinion is uncorrected and not selected for official publication.

FILED: NEW YORK COUNTY CLERK 12/09/2024 12:55 PM INDEX NO. 160699/2018 NYSCEF DOC. NO. 280 RECEIVED NYSCEF: 12/09/2024

SUPREME COURT OF THE STATE OF NEW YORK NEW YORK COUNTY PRESENT: Hon. James E. d'Auguste PART 55 Justice ------------------------ ·-----X SAMUEL D. ISAL Y, INDEX NO. 160699/2018 Plaintiff, MOTION SEQ. NO. 013 - V - DAMIAN GARDE, DELILAH BURKE , DECISION + ORDER ON MOTION Defendants. --------------------------------------------------------X

The following e-filed documents, listed by NYSCEF document number (Motion 013) 276, 277, 278, 279 were read on this motion to/for VACATE

Plaintiff moves to reject, vacate or, in the alternative, modify the report and recommendation in this action dated October 25, 2024 (Brian Krist, Special Master), issued after a hearing and recommendation that the Court enter judgment against plaintiff in this action for attorney's fees and costs. 1 Plaintiffs motion is denied, and the report is confirmed in full.

As defendant Garde notes in opposition, a special master's findings and recommendations are "entitled to great weight," and "should be confirmed if (the] findings are supported by the record." Poster v. Poster, 4 A.D.3d 145, 145 (1st Dep't 2004); and Sichel v. Polak, 36 A.D.3d 416,416 (1st Dep 't 2007).

While a special master's conclusions of law are not given the same deference as factual findings, the special master's conclusions rejecting plaintiffs as-applied challenge to 2020 N.Y. Laws ch. 250 are correct for the reasons set forth in the report, and the Court adopts them. Plaintiff has not offered any basis to revisit the special master's factual findings, and the Court finds no error in them. Thus, the branch of plaintiffs motion to reject or vacate the report outright is denied.

Plaintiffs lightly-cited objection to the imposition of prejudgment interest is misplaced, and that branch of plaintiffs motion is denied as well. The Court concurs with the special master that Civil Rights Law § 70-a(l)(a) contemplates compensatory, not punitive relief, as "[a]n award of attorney's fees is a

FILED: NEW YORK COUNTY CLERK 12/09/2024 12:55 PM INDEX NO. 160699/2018 NYSCEF DOC. NO. 280 RECEIVED NYSCEF: 12/09/2024 compensatory and restorative remedy intended to return a defendant to their financial status quo ante but for a plaintiffs initiation of a SLAPP against them, as opposed to punitive damages." (Report, at 10). See generally, Benlevi v. Ruka}, Index No. SC-806-24/NY, 2024 N.Y. Misc. LEXIS 5139 (Civ. Ct., New York Co. Jul. 8, 2024) (discussing different types of anti-SLAPP relief, their purposes, and standards).

Plaintiffs reliance on the bar against prejudgment interest upon punitive damages is not well-founded.

Pursuant to CPLR 5001(a), prejudgment interest "shall be recovered upon a sum awarded because of a breach of performance of a contract, or because of an act or omission depriving or otherwise interfering with title to, or possession or enjoyment of, property, except that in an action of an equitable nature, interest and the rate and date from which it shall be computed shall be in the court's discretion." 2 The Court has grave doubts as to plaintiffs argument that prejudgment interest is precluded by CPLR 5001, for the reasons the Second Circuit explained (and Garde cited in opposition) years ago, itselfrelying in part upon the Court of Appeals from earlier still. See, Mallis v. Bankers Trust Co., 717 F.2d 683, 694 (2d Cir. 1983), quoting, Prager v. New Jersey Fidelity & Plate Glass Ins., 245 N.Y. 1, 5-6 (1927).

Plaintiffs litigation of this action certainly deprived Garde of money that would otherwise have gone to other purposes, and the Court of Appeals has held simply that "money is property" since before the Civil War. People ex rel. Griffin v. Mayor, etc., of Brooklyn, 4 N.Y. 419,422 (1851). Other courts, while not directly addressing plaintiffs CPLR 5001 objection, have nonetheless fixed prejudgment interest on attorney's fee judgments. See, e.g., Galasso Langione & Rotter LLP v. Liotti, 22 Misc. 3d 450, 455 (Sup. Ct., Nassau Co. 2008), ajfd., 81 A.D.3d 880 (2d Dep't 2011) (fixing prejudgment interest on attorney's fees); and Shapiro v. Kurtzman, 81 Misc. 3d 819(A), 834-838 (Sup. Ct., Rockland Co. 2023) (same). That, coupled with the clear legislative intent to return SLAPP defendants to their status quo ante as Garde notes in opposition, indicates that this is the type of demand for which prejudgment interest is appropriate under CPLR 5001. 3

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Turning then to the question of the date upon which prejudgment interest should run, the Court, again, confirms the report for the reasons stated by the special master. "At every stage, this action has been prolonged and deeply litigated long after its natural demise," by plaintiffs own choices. (Report, at 14). Once the Court initially dismissed this action in its July 14, 2022, decision - to which the Court adhered upon reargument plaintiff sought in Motion Seq. No. 005 - plaintiff could have simply stopped. 4 Time and again, the Court, the Appellate Division, the District Court, and the Second Circuit have weighed plaintiffs claims, measured them, and found them wanting. 5 The only question about plaintiffs claims against Garde after July 14, 2022, was whether Chapter 250 compelled plaintiff to reimburse Garde for dragging him to the courthouse on claims belied by New York law. And yet, plaintiff has pushed over two more years of litigation from that point.

Conclusion Plaintiff has not offered a valid basis to revisit the special master's findings of fact and conclusions of law in the report and recommendation, and the Court declines to do so.

Accordingly, it is hereby ORDERED that plaintiffs motion to vacate the report and recommendation in this action dated October 25, 2024, pursuant to CPLR 4403 and 5015(a)(5) and 22 N.Y.C.R.R. § 202.44(a) is denied; and it is further situations, award attorney fees on an equitable basis, attorneys fees, when awarded as allowed by law, are awarded as a matter of legal right"). Thus, the special master had at least discretion to recommend interest even assuming he was not mandated to do so.

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[* 3] 3 of 4 FILED: NEW YORK COUNTY CLERK 12/09/2024 12:55 PM INDEX NO. 160699/2018 NYSCEF DOC. NO. 280 RECEIVED NYSCEF: 12/09/2024

ORDERED pursuant to CPLR 4403 that the report and recommendation is confirmed in full ; and it is further ORDERED that, pursuant to Civil Rights Law§ 70-a(l)(a), the clerk enter judgment in favor of defendant Damian Garde and against plaintiff Samuel D. Isaly in the amount of $403 ,456.18, together with the costs and disbursements of this action, with interest from July 14, 2022.

This constitutes the Decision and Order of the Court.

12/09/2024

DATE CHECK ONE : CASE DISPOSED GRANTED 0 DENIED □ OTHER APPLICATION : SETTLE ORDER CHECK IF APPROPRIATE: INCLUDES TRANSFER/REASSIGN FIDUCIARY APPOINTMENT □ REFERENCE

160699/2018 ISALY, SAMUEL D. vs. GARDE, DAMIAN Page 4 of 4 Motion No. 013

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