Opinion
2019-04276 Index 18618/2014
06-23-2021
Shady Lady Restaurant Corp., respondent, v. United National Group, et al., defendants, United National Insurance Co., appellant.
M277801 E/sl
WILLIAM F. MASTRO, J.P. REINALDO E. RIVERA, VALERIE BRATHWAITE, NELSON LINDA CHRISTOPHER, JJ.
DECISION & ORDER ON MOTION
Appeal from an order of the Supreme Court, Suffolk County, dated March 6, 2019. The matter was placed on the calendar for March 25, 2021. On March 12, 2021, the appellant's counsel advised this Court that the underlying action had settled on October 15, 2020, and provided a stipulation of discontinuance dated October 15, 2020. By decision and order on application dated March 19, 2021, the appeal was deemed withdrawn upon the parties' stipulation. By order to show cause dated April 2, 2021, Law Office of Steven G. Fauth, LLC, the appellant's counsel, and Law Office of Craig A. Blumberg, the respondent's counsel, were directed to show cause before this Court why an order should or should not be made and entered imposing such sanctions and/or costs, if any, against them pursuant to 22 NYCRR 1250.2(c) as this Court may deem appropriate.
Now, upon the order to show cause and the papers filed in response thereto, it is
ORDERED that within 30 days after service upon it of a copy of this decision and order on motion, Law Office of Steven G. Fauth, LLC, the appellant's counsel, is directed to pay a sanction in the sum of $500 to the Lawyers' Fund for Client Protection of the State of New York; and it is further, ORDERED that Law Office of Steven G. Fauth, LLC, shall file proof of payment with the Clerk of this Court, within 21 days after payment of the sanction, via email at ad2clerk@nycourts.gov; and it is further, ORDERED that within 30 days after service upon it of a copy of this decision and order on motion, Law Office of Craig A. Blumberg, the respondent's counsel, is directed to pay a sanction in the sum of $250 to the Lawyers' Fund for Client Protection of the State of New York; and it is further, ORDERED that Law Office of Craig A. Blumberg, shall file proof of payment with the Clerk of this Court, within 21 days after payment of the sanction, via email at ad2clerk@nycourts.gov; and it is further, ORDERED that the Clerk of this Court, or her designee, is directed to serve counsel for the parties with a copy of this decision and order on motion, by regular mail.
Section 1250.2(c) of the Rules of the Appellate Division (22 NYCRR 1250.2[c]), provides, in pertinent part, that "[t]he parties or their attorneys shall immediately notify the court when there is a settlement of a matter or any issue therein or when a matter or any issue therein has been rendered moot . . . Any such notification shall be followed by an application for appropriate relief. Any party or attorney who, without good cause shown, fails to comply with the requirements of this subdivision may be subject to the imposition of sanctions." Here, counsel for the appellant and counsel for the respondent failed to notify this Court that the action had been settled and the appeal had been rendered academic prior to the date that the appeal was placed on the calendar, without good cause. Thus, under the circumstances, sanctions in the amount set forth above imposed against Law Office of Steven G. Fauth, LLC, and Law Office of Craig A. Blumberg are warranted.
MASTRO, J.P., RIVERA, BRATHWAITE NELSON and CHRISTOPHER, JJ., concur.