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Gendell v. 42 W. 17th St. Hous. Corp.

Supreme Court, Appellate Division, First Department, New York.
Jan 18, 2022
201 A.D.3d 520 (N.Y. App. Div. 2022)

Opinion

15086 Index No. 158100/15 Case No. 2020–02419

01-18-2022

Yfat GENDELL et al., Plaintiffs–Appellants–Respondents, v. 42 W. 17TH ST. HOUSING CORP. et al., Defendants–Respondents–Appellants.

Adam Leitman Bailey, P.C., New York (Jeffrey R. Metz of counsel), for appellants-respondents. Gartner & Bloom, P.C., New York (Alexander D. Fisher of counsel), for respondents-appellants.


Adam Leitman Bailey, P.C., New York (Jeffrey R. Metz of counsel), for appellants-respondents.

Gartner & Bloom, P.C., New York (Alexander D. Fisher of counsel), for respondents-appellants.

Renwick, J.P., Webber, Oing, Scarpulla, Pitt, JJ.

Order, Supreme Court, New York County (Alan C. Marin, J.), entered on or about April 16, 2020, which, insofar as appealed from, granted the motion of defendants 42 W. 17th St. Housing Corp. (the Coop) and Yitzhak Loria Management LLC, seeking a protective order barring the continuation of the deposition of nonparty witness Ruth Miller and sua sponte directed the suppression of deposition testimony previously taken, and denied that portion of the motion seeking sanctions under 22 NYCRR 130.1 against plaintiffs’ counsel, unanimously reversed, on the law and the facts, without costs, the order vacated insofar as it directed suppression of deposition testimony and submission of interrogatories, the deposition directed to continue, and sanctions imposed against plaintiffs’ former counsel in the amount of $5,000.00.

It was an improvident exercise of discretion for the court to issue a protective order under CPLR 3103(a) barring a continuation of the deposition of nonparty Ruth Miller. Miller is the majority shareholder of the Coop, and therefore is a key figure in the events surrounding plaintiffs’ negligence and breach of contract claims regarding leaks in plaintiffs’ units. Moreover, Miller was a member of the Board during a period of time when decisions were made about building maintenance, which is a relevant issue in plaintiffs’ action. Thus, her testimony is "material and necessary" ( CPLR 3101[a] ; see Anonymous v. High School for Envtl. Studies, 32 A.D.3d 353, 358, 820 N.Y.S.2d 573 [1st Dept. 2006] ; Roman Catholic Church of the Good Shepherd v. Tempco Sys., 202 A.D.2d 257, 257–258, 608 N.Y.S.2d 647 [1st Dept. 1994] ).

Similarly, it was error for the court to sua sponte issue a suppression order of the testimony previously taken (see CPLR 3103[c] ). Defendants made no showing that evidence was improperly or irregularly obtained during the deposition, or that prejudice to a substantial right had accrued through discovery of improperly obtained evidence (see Coast to Coast Energy, Inc. v. Gasarch, 77 A.D.3d 589, 589, 909 N.Y.S.2d 360 [1st Dept. 2010] ; Matter of Jones, 47 A.D.3d 931, 933, 851 N.Y.S.2d 216 [2d Dept. 2008] ; compare Amado v. Estrich, 182 A.D.2d 1109, 1110, 583 N.Y.S.2d 85 [4th Dept. 1992] [the defendants’ submission of misleading photographs to court in response to discovery demand prejudiced a substantial right of the plaintiffs, and court therefore properly exercised its discretion in precluding use of the portion of the deposition testimony that was referrable to misleading photographs]).

Nevertheless, counsel's behavior at the deposition was frivolous and unprofessional. Among other things, counsel called the witness "a liar" and told her on the record that she had done "plenty wrong" and had "plenty to worry about in this case," despite the fact that she is not even a party to the action. Sanctions against counsel are therefore warranted ( 22 NYCRR 130–1.1 ; see Cadlerock Joint Venture, L.P. v. Sol Greenberg & Sons Intl., Inc., 94 A.D.3d 580, 582, 942 N.Y.S.2d 497 [1st Dept. 2012], lv denied 20 N.Y.3d 857, 2013 WL 452191 [2013], cert denied sub nom. Sahid v. Cadlerock Joint Venture, L.P. 571 U.S. 940, 134 S.Ct. 89, 187 L.Ed.2d 254 [2013] ; Polidori v. Societe Generale Group., 57 A.D.3d 369, 369, 869 N.Y.S.2d 448 [1st Dept. 2008] ).


Summaries of

Gendell v. 42 W. 17th St. Hous. Corp.

Supreme Court, Appellate Division, First Department, New York.
Jan 18, 2022
201 A.D.3d 520 (N.Y. App. Div. 2022)
Case details for

Gendell v. 42 W. 17th St. Hous. Corp.

Case Details

Full title:Yfat GENDELL et al., Plaintiffs–Appellants–Respondents, v. 42 W. 17TH ST…

Court:Supreme Court, Appellate Division, First Department, New York.

Date published: Jan 18, 2022

Citations

201 A.D.3d 520 (N.Y. App. Div. 2022)
157 N.Y.S.3d 365

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