Margaret Betts v. Sixty Lower East Side, LLC, Sixty Hotels, LLC, and Sixty Hotel Manager, LLC

CourtDistrict Court, S.D. New York
DecidedNovember 24, 2025
Docket1:20-cv-04772
StatusUnknown

This text of Margaret Betts v. Sixty Lower East Side, LLC, Sixty Hotels, LLC, and Sixty Hotel Manager, LLC (Margaret Betts v. Sixty Lower East Side, LLC, Sixty Hotels, LLC, and Sixty Hotel Manager, LLC) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Margaret Betts v. Sixty Lower East Side, LLC, Sixty Hotels, LLC, and Sixty Hotel Manager, LLC, (S.D.N.Y. 2025).

Opinion

UNITED STATES DISTRICT COURT

SOUTHERN DISTRICT OF NEW YORK

------------------------------X

MARGARET BETTS,

Plaintiff,

MEMORANDUM AND ORDER - against – 20 Civ. 4772 (NRB) SIXTY LOWER EAST SIDE, LLC, SIXTY HOTELS, LLC, and SIXTY HOTEL MANAGER, LLC,

Defendants. ------------------------------X

NAOMI REICE BUCHWALD UNITED STATES DISTRICT JUDGE This is an appeal from a jury verdict awarding compensatory damages to Margaret Betts (“plaintiff”), who was sexually assaulted on October 19, 2018 by a massage therapist engaged by and sent to her hotel room by Sixty LES (the “Hotel”).1 Before 0F sending the masseur, Iouri Astakhov (“Astakhov”), to Ms. Betts’ guest room, the Hotel failed to investigate whether he was licensed or authorized to practice massage therapy -- as required by New York State law. On July 17, 2025, nearly seven years after her assault, a jury awarded Ms. Betts $1 million in past and $375,000 in future pain and suffering damages, having apportioned fault 50%

1 Sixty Lower East Side, LLC, Sixty Hotels, LLC, and Sixty Hotel Manager, LLC (together, “defendants”) were the owners and managers of the Hotel at the time of Ms. Betts’ assault. For purposes of this opinion the Court will, unless otherwise indicated, use the terms “Hotel” and “defendants” interchangeably. to 50% between non-party Astakhov and the Hotel.2 Verdict Form at 1F 2-6. The final judgment entered by the Court on July 22, 2025 also awarded $237,677.81 in pre-judgment interest to Ms. Betts. ECF No. 206 at 2-3. Pre-judgment interest began accruing when the Court, on August 21, 2023, granted summary judgment to Ms. Betts on liability, finding that the Hotel (i) was negligent per se for violating New York Education Law § 7802 and (ii) proximately caused plaintiff’s harm by failing to verify if Astakhov was licensed or authorized to practice before soliciting his services. See Betts v. Sixty Lower E. Side, LLC, No. 20 Civ. 4772 (NRB), 2023 WL 5352334, at *7-10, 13 (S.D.N.Y. Aug. 21, 2023) (“SJ Opinion”), appeal withdrawn, No. 23-1289, 2024 WL 1152438 (2d Cir. Jan. 22, 2024), and motion to certify appeal denied, No. 20 Civ. 4772 (NRB), 2024 WL 3104323 (S.D.N.Y. June 24, 2024).

The Hotel filed several post-trial motions, which are addressed in this opinion. First is the Hotel’s Rule 59(e) motion

2 The Court granted the Hotel’s pre-trial request for a jury instruction and verdict form providing for the apportionment of fault pursuant to CPLR § 1601. Betts v. Sixty Lower E. Side, LLC, No. 20 Civ. 4772 (NRB), 2025 WL 1869447, at *3 (S.D.N.Y. July 7, 2025); see also ECF No. 218-3 (“Trial Tr.”) at 384:4-11. Section 1601 provides that in “action(s) involving two or more tortfeasors,” a defendant may seek apportionment of damages “in accordance with the relative culpability of each person causing or contributing to the total liability for non-economic loss.” At the conclusion of trial, the jury nominally awarded $2,000,000 in past damages and $750,000 in future damages to plaintiff. ECF No. 218-4 (“Verdict Form”) at 2-3. However, in the apportionment section of the Verdict Form, the jury only found the Hotel 50% at fault, id. at 6, thus reducing defendants’ effective liability to a total of $1,375,000 in past and future damages, before interest. to vacate the Court’s summary judgment decision on liability. ECF No. 219 (“Mot.”) at 2; see Fed. R. Civ. P. 59(e). Also, the Hotel moves to reduce the jury’s apportionment verdict and damages award

pursuant to Rule 59(e) or, in the alternative, for a new trial pursuant to Rule 59(a)(1)(A).3 Id. 2F Background3F 4 The essential facts of this case are not -- and never were - - disputed. Ms. Betts was a registered guest at the Hotel in New York City from October 19 to October 21, 2018.5 The Hotel offered 4F

3 On August 7, 2025, plaintiff’s counsel filed a two-page “notice of motion” for “additur.” ECF No. 222 at 1. While counsel promised to file a supporting brief “at a later date,” id., no brief was ever filed. Although this Court is well-familiar with letter motions and does not always require full and formal briefing, the filing of a naked notice of motion without any supporting authority or reasoning does not merit a response and may be considered as an abandonment of the proposed motion. Moreover, even if the Court were obliged to address plaintiff’s notice of motion, it would be denied. The Supreme Court has held that while orders for remittitur are generally permissible following a jury verdict, “additur [i]s unconstitutional” under the Seventh Amendment. Gasperini v. Ctr. for Humans., Inc., 518 U.S. 415, 433 (1996)(citing Dimick v. Schiedt, 293 U.S. 474, 486–487 (1935)); see also Fox v. City Univ. of New York, No. 94 Civ. 4398 (CSH), 1999 WL 33875, at * 11 (S.D.N.Y. Jan. 26, 1999) (“[E]ven in a diversity case presenting only state law claims, a federal trial judge cannot make an order of additur, even though his state court colleague could. [U]nless and until the Supreme Court overrules Dimick v. Schiedt, a state statute such as [CPLR] § 5501(c) cannot trump the United States Constitution.”). 4 In considering the Hotel’s challenge to the Court’s summary judgment decision, see infra, Discussion Section I, the Court references the plaintiff's Local Civil Rule 56.1 statement (“Pl. 56.1”), ECF No. 57; defendants’ Local Civil Rule 56.1 counterstatement (“Def. Counter 56.1”), ECF No. 62; defendants’ Local Civil Rule 56.1 statement (“Def. 56.1”), ECF No. 63-1; plaintiff's Local Civil Rule 56.1 counterstatement (“Pl. Counter 56.1”), ECF No. 66-1. In considering defendants’ challenge to the jury verdict, see infra, Discussion Section II, the Court references the trial transcript, the Verdict Form, filings cited in the parties’ briefing, and any evidence properly admitted at trial. 5 See Def. 56.1 ¶¶ 10, 37; Pl. Counter 56.1 ¶ 10, 37. an on-premises spa, available “exclusively to hotel guests,” which it advertised in a spa “menu” placed in each room. SJ Opinion at Appendix A (the “Spa Menu”). However, due to the limited capacity

of the dedicated spa, the “Spa Menu” also offered in-room massages, which were advertised directly adjacent to the “in-spa” option. Spa Menu at 1 (advertising “customized massage[s] . . . [a]vailable in [the guest’s] room”). On October 19, 2018, Ms. Betts requested an in-room massage by calling the front desk.6 Hotel staff 5F contacted Valeryia Vasilets, an outside massage therapist on their existing list, who was unavailable.7 Vasilets then contacted 6F Astakhov, who responded that he was available, and referred him to the Hotel.8 It is undisputed that Astakhov obtained a license to 7F practice massage therapy on October 1, 2008, but that he failed to re-register, as required by law, on November 30, 2013, and has not done so since.9 It is likewise undisputed that although Astakhov 8F had provided massage services at the Hotel before, the Hotel made no effort to verify at any time whether he was properly authorized as a masseur under New York’s licensure statute.

6 Def. 56.1 ¶¶ 12, 15; Pl. Counter 56.1 ¶¶ 12, 15. 7 Def. 56.1 ¶¶ 14, 16-17; Pl. Counter 56.1 ¶¶ 14, 16-17. 8 See Def. 56.1 ¶ 17. 9 See Verification Search, N.Y. Education Dep't, https://www.op.nysed.gov /verificationsearch?licenseNumber=022139&professionCode=027 (last accessed October 21, 2025); SJ Opinion at Appendix B. After Astakhov’s arrival, the Hotel directed him to plaintiff’s room.10 Then, Ms. Betts removed her clothing and lay 9F down on the massage table.11 While in this vulnerable position, 10F she was sexually assaulted. As described by Ms.

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Margaret Betts v. Sixty Lower East Side, LLC, Sixty Hotels, LLC, and Sixty Hotel Manager, LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/margaret-betts-v-sixty-lower-east-side-llc-sixty-hotels-llc-and-sixty-nysd-2025.