Deeb v. Tougher Industries, Inc.

Summary

The New York Appellate Division, Third Department reviewed sanctions imposed sua sponte against plaintiff’s counsel in an employment compensation action. The court held that counsel was entitled to notice and a reasonable opportunity to be heard before sanctions could be imposed, reversed the $1,500 sanction, and remitted the matter for further proceedings.

Holdings

1. Although a court may impose sanctions on its own initiative, it may not impose a sanction where the sanctioned party was not notified in advance that a penalty might be imposed and was not given a reasonable opportunity to be heard in opposition.

Questions Presented

1. Whether Supreme Court could impose a monetary sanction sua sponte without first notifying plaintiff's counsel that a sanction might be imposed and providing a reasonable opportunity to be heard.

Disposition

reversed_and_remanded