Section 487 of the New York Judiciary Law criminalizes and creates a civil cause of action for parties who have been harmed by an attorney’s intentional deceit or collusion in a judicial proceeding. The precise scope of Section 487 remains disputed amongst New York courts. On the one hand, courts have observed that the statute’s policy of protecting against attorney abuse and deceit warrants a broad interpretation. Other courts have found that the text of the statute, along with its criminal component, support a narrower construction.
In a Jan. 7, 2016 decision, Kallista, S.A. v. White & Williams LLP, Justice Alan D. Scheinkman of the Westchester County Commercial Division dismissed a Section 487 claim based on allegations of attorney deceit in connection with a federal administrative proceeding outside of New York State.1 In dismissing that claim, the court found that Section 487 was applicable only to court proceedings, not to administrative proceedings. While the court further observed that there is a “genuine debate” as to whether Section 487 is limited to proceedings within New York, the court did not need to rule on that issue as it disposed of the claim based on its administrative proceeding context.
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