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Trials & Litigation

Sanctions of $18K against defendant lawyer and his counsel are upheld by New York appeals court

A defendant attorney in a business dispute and his counsel must each pay $9,000 for their deposition conduct, a New York appeals court ruled last week.

Upholding the $18,000 in sanctions imposed by a commercial division judge in 2013 opinion (PDF), the Appellate Division, First Department said the trial court had “providently exercised its discretion” in fining Evgeny “Gene” Freidman for what the appellate court described as a “profanity-laden attack on the lawyer conducting the deposition.” Although the appellate panel notes that Friedman is a practicing attorney, he is probably best known as a New York taxi company mogul.

The appellate court’s April 19 opinion also upheld another $9,000 sanction against Freidman’s lawyer, Michael Cohen of Tenenbaum Berger & Shivers, for repeatedly instructing Freidman not to answer and coaching him to say he did not recall in response to questions during the deposition.

Rebecca Crance of Tenenbaum Berger represented both client and attorney in the sanctions matter. She said they are disappointed and considering their options, the New York Law Journal (sub. req.) reports.

Attorney Eric Wertheim of Val Mandel, who was the target of Freidman’s ire at the deposition, argued the sanctions matter for the opposing side.

Wertheim said emotions have dialed down since the parties decided to arbitrate their dispute and offered his opinion that the sanctions ruling “is part of [a] trend by judges, both state and federal, to crack down on deposition misbehavior.

“The culture is changing,” Wertheim said.