As reported in the New York Law Journal, Golenbock, led by senior litigation partner Michael Devorkin, won a significant case in the New York Appellate Division. In a decision of first impression, affirming a lower court order, Golenbock convinced the Court that New York’s anti-SLAPP law prevents a party who is sued in a case from bringing a retaliatory counter-suit unless it proves at the outset of the case that the counter-suit has a substantial basis, even if the original suit only involved private litigation that did not concern a matter of public interest. Golenbock successfully moved to dismiss the retaliatory counter-suit and its client was awarded its attorney’s fees, which are mandatory under the anti-SLAPP law.
Devorkin told the New York Law Journal that a 2020 expansion of the statute made it “crystal clear that New York has joined California and other states in protecting private litigation…This is a major victory for parties who are sued without substantial basis and provides for early screening of such baseless suits. Parties who have a substantial basis for their suits have no reason to fear.”
Prior to this ruling, New York courts have only applied anti-SLAPP protections to the exercise of free speech in connection with issues of public interest but not to protect private litigants.
Golenbock’s client, a Moroccan businessman, in 2018 caused a Moroccan company in which he was an officer and owner, to commence an action against a New York company, seeking financial records concerning investments in that company made by the Moroccan company. In 2022, one of the owners of the defendant in the first case and others retaliated with a countersuit against our client and Golenbock, claiming our client had no authority to bring and continue the 2018 suit.
Golenbock prevailed on a motion to dismiss the second suit under NY’s anti-SLAPP statute, arguing that the retaliatory lawsuit violated the anti-SLAPP statute, because it lacked a substantial basis in law and fact. Golenbock also succeeded in obtaining an award of mandatory attorney’s fees against the retaliating plaintiffs. The amount of fees and costs to be awarded is pending.
In response to the contention that the anti-SLAPP statute only applies to protect the exercise of free speech in connection with issues of public interest, Devorkin successfully argued in Supreme Court and the Appellate Division that, as in other states, retaliatory lawsuits should be dismissed and attorney’s fees awarded to protect private litigants who had originally commenced a private business litigation not affecting issues of public interest.
The Appellate Division held that plaintiff’s “argument is unavailing,” because the 2020 amendment to this Statute added a section that “does not require public interest and ‘conduct . . . in furtherance of the exercise of the constitutional right of petition’ suffices. ‘[T]he right under the First Amendment to the United States Constitution to petition the government’ includes litigation.” The Court also noted that “’[m]atters of public interest. . . include judicial proceedings.’’
The Golenbock legal team also included associates Kelsey Davis and Randi Brown.
The case citation is Sweetpea Ventures Inc. et al . v. Omar Belmamoun et al., 2024 N.Y. Slip Op. 04841 (1st Dep’t Oct. 3, 2024)
An article about this case appeared in the New York Law Journal on October 11, 2024. It is available to subscribers here.
Read the Appellate Department Decision and Order here.
Golenbock Eiseman Assor Bell & Peskoe LLP
Golenbock is a Manhattan-based business law firm with a broad-based practice that offers corporate, complex litigation, labor & employment, real estate, reorganization, intellectual property, tax, and trust & estate expertise. The firm provides high value, sophisticated counsel and representation for its domestic and international clients while maintaining a hands-on, personalized approach to all matters.
Golenbock represents private equity and venture funds, individual entrepreneurs and investors, and companies in a wide variety of businesses ranging from start-ups to Fortune 500 companies, with a specific focus on the mid-market segment. The firm and its attorneys have achieved recognition by the leading lawyer rankings organizations-Chambers, Best Lawyers, and Super Lawyers.
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