FKB’s Rachel Aghassi and Daniel H. Butler successfully dismissed Plaintiff’s Complaint in connection to her claims against a former Justice of the New York County Supreme Court, acting in his court-appointed capacity as a judicial receiver.
The lawsuit against FKB’s client, a well-respected former NYS Supreme Court Justice, stemmed from an underlying, contested matrimonial action in Supreme Court, New York County. FKB’s client was appointed as a judicial receiver for the purposes of effectuating the sale of the marital residence. FKB’s client sold the home, in his position as a receiver, and sent Plaintiff a check for her share of the proceeds (over $300,00). FKB’s client was then sued by Plaintiff in Supreme Court, New York County, where Plaintiff sought the return of the marital residence.
FKB argued on pre-answer motion to dismiss that Plaintiff was collaterally estopped from litigating the issue of whether FKB’s client was allowed to sell the marital home, in his position as a receiver. FKB also argued that Plaintiff’s case-and-chief must be dismissed because it is well settled that a court-appointed receiver acts as an arm of the court and is immune from liability for actions grounded in his or her conduct as receiver. FKB also argued that Plaintiff’s Complaint failed to state a claim against FKB’s client, in light of the above, and in light of Plaintiff’s failure to reference FKB’s client in her Complaint.
By decision dated February 5, 2021, Justice Francis A. Kahn, J.S.C., granted FKB’s motion pursuant to CPLR § 3211(a)(7). All of Plaintiff’s claims against FKB’s client were dismissed as part of FKB’s pre-answer motion.