Opinion
No. 01 Civ. 10080 (RWS)
February 10, 2003
MEMORANDUM OPINION
Defendant Steven Chrust ("Chrust") has moved for sanctions against plaintiff Steven A. Greenberg ("Greenberg") pursuant to Rule 11, Fed.R.Civ.P. For the reasons stated below, the motion is denied at this time.
This action was commenced on November 14, 2001, alleging negligent misrepresentations, breach of fiduciary duty, securities fraud, and common law fraud. By order of April 26, 2002, a portion of the common law fraud claim survived Chrust's motion to dismiss. On October 31, 2002, Chrust's motion for summary judgment was denied on the grounds that Greenberg's statements had created as issue of fact.
The instant motion for sanctions was fully submitted on December 24, 2002, and seeks an award of attorneys' fees incurred by Chrust based upon the failure of Greenberg to provide credible evidence to support his claims.
At this juncture, Greenberg has offered little credible support for his assertions concerning the misrepresentations he claims Chrust made with respect to the Winstar resignation, his prior business experience, and continuing affiliation with Winstar. Chrust seeks relief from the continuation of what he views as a frivolous and vexatious law suit.
A defendant's verdict, when the credibility of the parties is the principal issue, might well establish the basis for sanctions against Greenberg, given the record as it appears at this time. Under these circumstances it is prudent to defer this application for sanctions until the final disposition of this action.
The motion for sanctions is denied at this time with leave granted to renew upon the papers already submitted at the time the action is finally resolved.
It is so ordered.