Queens Judge Throws Out Corrections Officers' Suit Against Union, Law Firm
Justice Leonard Livote granted defendants' motion to dismiss the complaint on the grounds because the derivative action did not represent 5% of the union's membership.
June 24, 2020 at 06:37 PM
3 minute read
A Queens County Supreme Court justice this month dismissed a lawsuit filed by corrections officers against their union, its current and former leaders and its law firm, Koehler & Isaacs, finding that the officers lacked standing due to their small number.
Justice Leonard Livote granted defendants' motion to dismiss the complaint on the grounds that the derivative action did not represent 5% of the union's membership.
Livote earlier this month said the Appellate Division, Second Department has previously required that plaintiffs seeking to prosecute derivative actions on behalf of an incorporated labor union must represent at least that proportion of members under §623(a) of the Not-for-Profit Corporation Law.
Plaintiffs attorney Jeffrey Norton of Newman Ferrara, who represents a group of one active-duty Corrections Officers Benevolent Association member and three retirees, said they intend to appeal.
"Despite the adverse ruling, we are quite optimistic about our forthcoming appeal," he said Wednesday. "We understand Judge Livote felt constrained by the wording of [the] previous appellate ruling but we're looking forward to clarifying the law before the Second Department, and continuing to protect the rights of the members of the Corrections Officers Benevolent Association."
The COBA members filed suit in July 2019, arguing that COBA's executive board failed to appropriately oversee the investment activity of former union president Norman Seabrook and that Koehler & Isaacs was complicit in Seabrook's conduct.
Seabrook was sentenced in February 2019 to nearly five years in prison for his role in a bribery scheme involving the misuse of COBA funds. He was also ordered to pay $19 million in restitution.
The plaintiffs asked for the removal of the executive board and for damages caused by the alleged breaches of fiduciary duties by the executive board and Koehler & Isaacs.
Gibson, Dunn & Crutcher partner Reed Brodsky, who represented Koehler & Isaacs, argued that the suit was time-barred, among other issues. The claim against Koehler & Isaacs in particular must be dismissed, he argued, because the First Department has held claims of malpractice and breach of fiduciary duty are governed by the same standard of recovery in actions asserting attorney liability.
Brodsky praised Livote's ruling in a statement.
"We are very happy with the complete dismissal of this lawsuit against the well-regarded law firm of Koehler & Isaacs which has earned a reputation for integrity and tireless advocacy for its clients," he said.
Read more:
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
NOT FOR REPRINT
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
You Might Like
View AllHochul Vetoes 'Grieving Families' Bill, Faulting a Lack of Changes to Suit Her Concerns
Court System Names New Administrative Judges for New York City Courts in Leadership Shakeup
3 minute readRetired Judge Susan Cacace Elected Westchester DA in Win for Democrats
Law Firms Mentioned
Trending Stories
Who Got The Work
Michael G. Bongiorno, Andrew Scott Dulberg and Elizabeth E. Driscoll from Wilmer Cutler Pickering Hale and Dorr have stepped in to represent Symbotic Inc., an A.I.-enabled technology platform that focuses on increasing supply chain efficiency, and other defendants in a pending shareholder derivative lawsuit. The case, filed Oct. 2 in Massachusetts District Court by the Brown Law Firm on behalf of Stephen Austen, accuses certain officers and directors of misleading investors in regard to Symbotic's potential for margin growth by failing to disclose that the company was not equipped to timely deploy its systems or manage expenses through project delays. The case, assigned to U.S. District Judge Nathaniel M. Gorton, is 1:24-cv-12522, Austen v. Cohen et al.
Who Got The Work
Edmund Polubinski and Marie Killmond of Davis Polk & Wardwell have entered appearances for data platform software development company MongoDB and other defendants in a pending shareholder derivative lawsuit. The action, filed Oct. 7 in New York Southern District Court by the Brown Law Firm, accuses the company's directors and/or officers of falsely expressing confidence in the company’s restructuring of its sales incentive plan and downplaying the severity of decreases in its upfront commitments. The case is 1:24-cv-07594, Roy v. Ittycheria et al.
Who Got The Work
Amy O. Bruchs and Kurt F. Ellison of Michael Best & Friedrich have entered appearances for Epic Systems Corp. in a pending employment discrimination lawsuit. The suit was filed Sept. 7 in Wisconsin Western District Court by Levine Eisberner LLC and Siri & Glimstad on behalf of a project manager who claims that he was wrongfully terminated after applying for a religious exemption to the defendant's COVID-19 vaccine mandate. The case, assigned to U.S. Magistrate Judge Anita Marie Boor, is 3:24-cv-00630, Secker, Nathan v. Epic Systems Corporation.
Who Got The Work
David X. Sullivan, Thomas J. Finn and Gregory A. Hall from McCarter & English have entered appearances for Sunrun Installation Services in a pending civil rights lawsuit. The complaint was filed Sept. 4 in Connecticut District Court by attorney Robert M. Berke on behalf of former employee George Edward Steins, who was arrested and charged with employing an unregistered home improvement salesperson. The complaint alleges that had Sunrun informed the Connecticut Department of Consumer Protection that the plaintiff's employment had ended in 2017 and that he no longer held Sunrun's home improvement contractor license, he would not have been hit with charges, which were dismissed in May 2024. The case, assigned to U.S. District Judge Jeffrey A. Meyer, is 3:24-cv-01423, Steins v. Sunrun, Inc. et al.
Who Got The Work
Greenberg Traurig shareholder Joshua L. Raskin has entered an appearance for boohoo.com UK Ltd. in a pending patent infringement lawsuit. The suit, filed Sept. 3 in Texas Eastern District Court by Rozier Hardt McDonough on behalf of Alto Dynamics, asserts five patents related to an online shopping platform. The case, assigned to U.S. District Judge Rodney Gilstrap, is 2:24-cv-00719, Alto Dynamics, LLC v. boohoo.com UK Limited.
Featured Firms
Law Offices of Gary Martin Hays & Associates, P.C.
(470) 294-1674
Law Offices of Mark E. Salomone
(857) 444-6468
Smith & Hassler
(713) 739-1250