Two Lawyers, One Apartment, Two Sanctions

A recent opinion from the New York Appellate Division for the First Judicial Department:

Defendant, a lawyer involved in his divorce proceedings, submitted an affidavit to the court that was intentionally misleading in that he stated that he opposed renting out an apartment that was a disputed marital asset because he needed to use it at times for work purposes. He failed to disclose that, at that time, he was renting the apartment to the daughter of his lawyer (Bloom) for an amount that was substantially below market rate. This deliberately misleading representation concerning marital assets was properly found to be sanctionable, as it related to material facts on a pending motion.

The court also properly found that Bloom had engaged in sanctionable conduct
since he submitted the misleading affidavit, signing the certification on its
back. The evidence also showed that Bloom proceeded to engage in frivolous
conduct, including calling the police when plaintiff wife entered the apartment
unaware that anyone might be there, and found Bloom’s daughter there, and
accusing plaintiff of trespass and violation of criminal laws. When plaintiff’s
counsel reminded Bloom that the apartment was held in plaintiff’s name and that
she was unaware of the secret rental arrangement, Bloom wrote letters to
plaintiff’s counsel that were insulting, legally incorrect, and characterized by
the court as “shockingly unprofessional” and “unethical.” Under the
circumstances, the court properly found Bloom’s conduct to be frivolous within
the meaning of 22 NYCRR 130-1.1. Moreover, Bloom, who testified on his own behalf at the sanctions hearing, was afforded a reasonable opportunity to be heard.

The amount of the sanctions imposed was not an abuse of discretion. (citations omitted)

(Mike Frisch)