Feb 27th, 2024

FKB’s Rachel Aghassi And Lisa Burns 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

FKB’s Rachel Aghassi and Lisa Burns 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 previously sued by Plaintiff in Supreme Court, New York County, where Plaintiff sought the return of the marital residence. This action, along with 14 post-judgment motions filed by Plaintiff, were all dismissed. Plaintiff then filed suit against FKB’s client in Supreme Court, Kings County.   

In response, FKB argued on pre-answer motion to dismiss that Plaintiff’s action was barred by the doctrines of res judicata and collateral estoppel because Plaintiff previously filed an identical claim against FKB’s client in New York County, which was dismissed. FKB also argued that Plaintiff’s action was frivolous because numerous pieces of documentary evidence demonstrated Beeler’s ability, as a receiver, to effectuate the sale of the former marital residence. Lastly, FKB 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.  

By decision dated January 12, 2024, Justice Aaron D. Maslow, J.S.C., granted FKB’s motion pursuant to CPLR § 3211(a)(1).  All of Plaintiff’s claims against FKB’s client were dismissed as part of FKB’s pre-answer motion. Notably, Justice Maslow also barred Plaintiff from filing any other litigation with respect to the marital property in any county in the State of New York without judicial permission.

If you have any questions about this decision, the defense of judicial receivers, or the defense of professionals, in general, please contact Rachel Aghassi and Lisa Burns.