Gordon v. Marrone

155 Misc. 2d 726, 590 N.Y.S.2d 649, 1992 N.Y. Misc. LEXIS 485
CourtNew York Supreme Court
DecidedMarch 31, 1992
StatusPublished
Cited by15 cases

This text of 155 Misc. 2d 726 (Gordon v. Marrone) is published on Counsel Stack Legal Research, covering New York Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Gordon v. Marrone, 155 Misc. 2d 726, 590 N.Y.S.2d 649, 1992 N.Y. Misc. LEXIS 485 (N.Y. Super. Ct. 1992).

Opinion

OPINION OF THE COURT

Nicholas Colabella, J.

Does the award of attorney’s fees and expenses under 22 NYCRR subpart 130-1 for frivolous conduct, based on the prosecution of a colorable claim for an improper purpose, violate the Petition Clause of the First Amendment? This question arises, among others, in the context of what this court has previously characterized as a SLAPP suit, an acronym for strategic lawsuit against public participation. In a case of apparent first impression in this State, the court answers in the negative.

Petitioner is a nonresident owner of 158.74 acres of land in the Town of North Castle — approximately 1% of the real property in the Town — and a self-professed real estate investor. Respondent Nature Conservancy (Conservancy) is a not-for-profit corporation engaged in the management and stewardship of the Mianus River Gorge Wildlife Refuge and Botanical Preserve comprised of 569 acres of undeveloped forest and woodlands along the Mianus River and its tributaries in the Towns of North Castle, Bedford and Pound Ridge. Nationally, the Conservancy is involved in the preservation of over 5.5 million acres — owning or managing some 1,100 individual nature preserves.

In the past several years, the Conservancy has actively opposed the subdivision of a 36-acre parcel of property owned by petitioner that lies directly across from the Preserve’s trail entrance. The Conservancy has participated in proceedings under the State Environmental Quality Review Act, and [728]*728intervened in two proceedings brought pursuant to CPLR article 78 by petitioner against the Planning Board of the Town of Bedford.

Petitioner, in turn, brought this proceeding to contest an exemption from real property taxes granted by the Town of North Castle to the Conservancy for a four-acre parcel located across from the Preserve known as the Gibb House parcel. The Gibb House parcel was afforded the exemption by respondent Marrone, the Tax Assessor, on the basis that it acted as the Preserve’s administrative center and provided housing for the Preserve’s full-time steward.

This court ruled there was a rational basis for the exemption and declared petitioner’s challenge to be frivolous on the basis that it was brought primarily to harass or maliciously injure the Conservancy for opposing petitioner’s efforts to develop the area near the Mianus River Gorge by forcing it to incur the expense of defending the exemption. The court awarded attorney’s fees and legal expenses pursuant to 22 NYCRR subpart 130-1 based solely on petitioner’s improper purpose (151 Misc 2d 164). Petitioner now moves to reargue the award of attorney’s fees and expenses. For purposes of reargument, petitioner assumes the correctness of the court’s finding as to his motivation in bringing this proceeding.

I

Petitioner argues an award based solely on improper motives is constitutionally proscribed by the Petition Clause of the First Amendment of the US Constitution, which guarantees the "right * * * to petition the Government for a redress of grievances”, because it has a chilling effect on the right of access to the courts.1

Petitioner contends the right of access should be protected in instances in which the court is considering an award of attorney’s fees and expenses for frivolous conduct by limiting an award to where the litigation can be found to lack a reasonable basis in fact or law and to have been brought in bad faith. This position is purportedly reflected in precedent [729]*729construing Federal Rules of Civil Procedure rule ll2 in which, notwithstanding separate bases for an award of fees in rule 11 similar to 22 NYCRR subpart 130-1, several of the Federal Circuits have construed rule 11 to preclude a finding of improper purpose in the filing of a complaint if the claim asserted has a reasonable basis in fact or law.3 Petitioner proffers that such precedent is applicable in considering 22 NYCRR subpart 130-1 because the latter was modeled after rule ll.4

[The court’s discussion of specific Federal cases construing rule 11 has been omitted from publication, but is briefly summarized in footnote 3.]

Significantly, none of the Federal precedent cited by petitioner, even those which apply a limited construction of rule 11, in reviewing a complaint, discuss the Petition Clause. Their analysis is based strictly on the language and legislative history of the rule. Even assuming protection of the right of [730]*730access was at the heart of those cases limiting rule 11, there is no parallel at bar. A special proceeding is summary in nature (Matter of Gagnon v Board of Educ., 119 AD2d 674; Matter of 22 Park Place Coop, v Board, of Assessors, 102 AD2d 893; see also, Port of N. Y. Auth. v 62 Cortlandt St. Realty Co., 18 NY2d 250), petitioner has not been déprived of access to the courts, and the proceeding was heard and disposed of on the merits.

The precedential value of cases construing rule 11 is also not as compelling as petitioner suggests for the reason that 22 NYCRR subpart 130-1 is clearly broader in reach than rule 11. Section 130-1.1 (c) defines conduct as frivolous if:

"(1) it is completely without merit in law or fact and cannot be supported by a reasonable argument for an extension, modification or reversal of existing law; or
"(2) it is undertaken primarily to delay or prolong the resolution of the litigation, or to harass or maliciously injure another.”

By embracing frivolous conduct undertaken for improper purpose without limitation to specific acts as in the case of rule 11, i.e., filing, it permits the court to consider more varied conduct. The court may consider events separately or within the context of the entire litigation. This is an important difference as frivolity may not always be immediately apparent. In an effort to avoid chilling legitimate advocacy, courts often initially allow the benefit of the doubt. But such largesse does not mean that such conduct is or should be immunized from later judicial scrutiny (see, 22 NYCRR 130-1.1 [c]).

Certainly, there is ample precedent for the courts to assess conduct within the larger scope of the over-all litigation. The Supreme Court noted, for example, in Bill Johnson’s Rests, v National Labor Relations Bd. (461 US 731, 747) that an award of attorney’s fees and expenses could be made at the dispositional stage upon finding that the employer’s lawsuit, although facially colorable, lacked merit and had an improper motive. The Court stated that, at that time, "[t]he employer’s suit having proved unmeritorious, the Board would be warranted in taking that fact into account in determining whether the suit had been filed in retaliation * * * If a violation is found, the Board may order the employer to reimburse the employees whom he had wrongfully sued for their attorney’s fees and other expenses” (461 US, supra, at 747). The term "unmeritorious”, as used by the Court, refers [731]*731merely to a losing claim, not a claim lacking any basis in fact or law.

Nothing in 22 NYCRR subpart 130-1 requires the court to ignore evidence of subjective bad faith.

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Bluebook (online)
155 Misc. 2d 726, 590 N.Y.S.2d 649, 1992 N.Y. Misc. LEXIS 485, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gordon-v-marrone-nysupct-1992.