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Oorah Inc. v. Kane Kessler PC

Lawyer Malfeasance Claim Must Be Brought in State Court; Fraudulent Transfer Claim Barred

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Oorah, Inc., Plaintiffv.Kane Kessler, P.C., Gerard Schiano-Strain, Esq, Birch Communications, Inc., Ronald Kuzon and John Does 1-10, Defendants

OPINION & ORDER Anon-profit entity, Oorah, Inc. (“Oorah”), in the midst of litigation in the New York courts, has brought suit here against one of its state-court adversaries, Birch Communications, Inc. (“Birch”); that adversary’s state-court counsel, Kane Kessler P.C. (“Kane Kessler”) and Kane Kessler lawyer Gerard Schiano-Strain (“Schiano-Strain,” and with Kane Kessler, “Kane Kessler”); and Ronald Kuzon, the general counsel of Birch’s state-court co-defendant, Covista Communications, Inc. (“Covista”). Oorah here alleges that Birch and Covista conspired with Kane Kessler to forestall litigation in the state-court action, gin up a sham sale of assets from Covista to Birch, falsify invoice records, and destroy evidence, all in an effort to prevent Oorah from collecting on debts that Covista owed it. Litigation in New York State Supreme Court between Oorah and Covista is ongoing.Oorah here brings fraudulent conveyance claims, a claim for breach of fiduciary duty, and a claim under Section 487 of the New York Judiciary Law-for malfeasance by attorneys-against each defendant. Defendants have moved to dismiss. For the reasons explained below, the Court dismisses Oorah’s complaint in its entirety.I. BackgroundA. Facts¹Oorah is a New Jersey non-profit corporation “whose mission is to provide children and their families opportunities to become productive and engaged members of their communities.” Compl.

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