Arita v. FDS Assoc., LLC

Summary

The Appellate Division, First Department modified an order denying the City of New York's motion to amend its answer, obtain further discovery, and stay pending summary judgment motions. The court permitted limited discovery consisting of a deposition of the plaintiff concerning his knowledge of allegations in a related federal RICO action and discovery of documents identified during that deposition, while otherwise affirming the order.

Holdings

1. The motion court properly denied the City leave to amend its answer to add affirmative defenses of fraud and fraud on the court based solely on the federal RICO complaint naming plaintiff's attorneys and medical providers.
2. The City was entitled to further limited discovery consisting of a deposition of plaintiff, restricted to his knowledge, if any, of the facts underlying the RICO allegations, together with discovery of documents identified during that deposition.
3. The City's request for a stay was moot because a decision had already been rendered on plaintiff's summary judgment motion.
4. The limited discovery could be conducted while the case remained on the trial calendar.

Questions Presented

1. Whether the City should be permitted to amend its answer to add affirmative defenses of fraud and fraud on the court based on the federal RICO complaint.
2. Whether the City was entitled to further limited discovery from plaintiff concerning his knowledge of the facts underlying the RICO action.
3. Whether the City's request to stay plaintiff's summary judgment motion remained justiciable after a decision had been rendered on that motion.

Disposition

other