April 15th, 2008

Judge Suing City for $1M Makes Headlines. Why?

I don’t really get the newspaper biz sometimes. I saw the front page headline in the Daily News as I passed through the train station yesterday, and read the story online here. New York Supreme Court Justice Jack Battaglia slips and falls on a floor in his courtroom because it was left wet and soapy by a janitor. Water on the floor is hard to see. He busts up his knee. It seems, in all respects, to be a run-of-the-mill lawsuit.

He then sues for a million dollars. Well, not really, but that is an archaic quirk in New York law. Litigants have actually been prohibited since 2003 from putting a number in the Complaint, as I’ve discussed previously. But because this is an action against the City of New York, a litigant is required to file a Notice of Claim within 90 days and is required to put a number in the claim. Dumb rule. How many people know how bad a knee injury will be within 90 days? Will they need surgery or will conservative treatment work? Three surgeries? Will there be pain and a limp forevermore? The answers are generally unknowable at the time a claim must be filed.

But you are required by law to put a number in the Notice. And so any lawyer with functioning neurons knows you are forced to assume, by law, a worst case scenario. Because if you state that fair and reasonable compensation would be $100,000, and it turns out much worse, then you might be, as we say in legalese, shit out of luck.

Last year the New York legislature took another step in abolishing this rule with regard to suits in the Court of Claims, where suits against the state are brought. (See: New York Cleans Up Claims Act). The ad damnum thus went to the scrap heap for cases against the State, as they had for everything else.

It’s time the legislature took the next step and dumped the rule for Notices of Claim against the City of New York. It serves no useful purpose. If the city wants to know what a litigant feels is the fair value of a matter, they can easily pick up the phone and call, or ask for it in writing, but requiring it by law is dumb, dumb, dumb.

As to the Daily News article, the writer calls it “the mother of all slip-and-fall cases.” Well, no, pretty routine actually. They call the judge “politically connected.” Do you know any that aren’t?

[Update: No suit has been brought, just a Notice of Claim filed. The purpose of which is to give the city prompt notice allow it to investigate the matter. So no, the janitor has not been sued, but has been partially identified. Which allows the city to investigate the claim. Which is kinda the whole idea.]

Should he not sit on city cases? Good question. Since there are plenty of judges in the courthouse, avoiding the appearance of impropriety is probably a good thing here.

But a much better question is: Why hasn’t there been any similar question about Wacthell Lipton representing the judiciary in the judge’s lawsuit for pay raises, and the ramifications of them appearing in front of judges whose interests they represent? Now that is a front page story. Yet I seem to be the only one to have covered it.

 

April 12th, 2008

Linkworthy

Dr. Wes rounds up the best of the med blogs with a very stylish Grand Rounds;

Blawg Review # 154
is up at David Harlow‘s HealthBlawg, with a theme of World Health Day;

Scott Greenfield ponders if an ethical violation occurred with Rusty Hardin, regarding the Roger Clemens steroid scandal and his breaking the attorney-client privilege; and

Chinese government goons attack a U.S. citizen on U.S. soil for expressing her First Amendment rights (Legal Satyricon)

 

April 11th, 2008

Did New York’s Chief Judge Sue State in the Wrong Court?

Yesterday Chief Judge Judith Kaye sued the State of New York (among other defendants) in Supreme Court, the state’s trial level court. But New York law provides that the Court of Claims has exclusive jurisdiction of suits against the state for money damages. Did New York’s Chief Judge sue in the wrong court?

I mentioned this subject quickly this morning as the bottom of a post on the ethical implications of Chief Judge Kaye’s legal counsel making a big gift to her and her fellow judges: Free legal services. But it seems that this subject deserves a post of its own. After all, if the Chief Judge and Wachtell Lipton can make such a blunder (if, in fact, it is a blunder) what does that mean?

This quote comes from a footnote out of the New York’s Court of Appeals, our highest court and the one Chief Judge Kaye sits on, in a case last year (Haywood v. Drown):

New York’s waiver of sovereign immunity is conditioned on submission to the exclusive jurisdiction of the Court of Claims ( see N.Y. Const, art. VI, § 9; Court of Claims Act § 8).

It sits as a footnote because this is well known law. That jurisdiction is for any case demanding money damages, and it seems that Chief Judge’ Kaye’s suit certainly fits that bill, especially since one of the things the suit asks for is that it be retroactive for a couple of years.

But wait! Having chipped in my two cents yesterday on the subject, I felt a need to continue the exploration, and found I was wrong, wrong, wrong. And the reason is that the constitutionality of the State’s conduct is at issue. I now shamelessly crib from a lower court decision by Justice Walter Tolub in 2006 against Comptroller Hevesi and the State (citations have been omitted):

It is well settled that the Court of Claims has exclusive jurisdiction over actions for money damages against the State, State agencies, or State officials acting in their official capacities in the exercise of governmental functions. This is because claims seeking money damages which arise out of actions and determinations made by State officials acting in their official roles are, in essence, actions against the State, for the State is the real party in interest. Court of Claims Act § 9[2] provides the court with jurisdiction to hear and determine claims against the state for the appropriation of any real or personal property or any interest therein.

“However, the Court of Claims does not have jurisdiction over challenges to the constitutionality of statutes, even if such determination is necessary to resolve a claim for money damages against the State. Rather, a declaratory judgment action in the Supreme Court is an appropriate vehicle for challenging the constitutionality of a statute.

So there you have it. That “Doh!” belongs to me.

 

April 10th, 2008

Wachtell and Judicial Ethical Violations in New York’s Judicial Pay Raise Suit?

Yesterday Chief Judge Judith Kaye brought a lawsuit for long sought judicial pay raises on behalf of the New York judiciary. In doing so, some ethical issues now present themselves based on the free legal services offered to the judiciary by Wachtell Lipton, an issue quite apart from the more obvious question of how any judge that is part of the plaintiff’s class can actually hear the case. (Those issues are covered today at Judicial Reports.)

Now here are the other ethical questions:

1. Wachtell Lipton is representing the Chief Judge pro bono through Bernard Nussbaum, former chief counsel to Bill Clinton. But isn’t that type of free representation a gift, and a very substantial gift at that, in violation of the ethical rules? According to New York’s Disciplinary Rule 7-110:

A lawyer shall not give or lend anything of value to a judge, official, or employee of a tribunal except as permitted by the Code of Judicial Conduct, but a lawyer may make a contribution to the campaign fund of a candidate for judicial office in conformity with the Code of Judicial Conduct.

So what does the Code of Judicial Conduct say? Here it is:

(5) A judge shall not accept, and shall urge members of the judge’s family residing in the judge’s household not to accept, a gift, bequest, favor or loan from anyone except:

(a) a gift incident to a public testimonial, books, tapes and other resource materials supplied by publishers on a complimentary basis for official use, or an invitation to the judge and the judge’s spouse or guest to attend a bar-related function or an activity devoted to the improvement of the law, the legal system or the administration of justice;

(b) a gift, award or benefit incident to the business, profession or other separate activity of a spouse or other family member of a judge residing in the judge’s household, including gifts, awards and benefits for the use of both the spouse or other family member and the judge (as spouse or family member), provided the gift, award or benefit could not reasonably be perceived as intended to influence the judge in the performance of judicial duties;

(c) ordinary social hospitality;

(d) a gift from a relative or friend, for a special occasion such as a wedding, anniversary or birthday, if the gift is fairly commensurate with the occasion and the relationship;

(e) a gift, bequest, favor or loan from a relative or close personal friend whose appearance or interest in a case would in any event require disqualification under section 100.3(E);

(f) a loan from a lending institution in its regular course of business on the same terms generally available to persons who are not judges;

(g) a scholarship or fellowship awarded on the same terms and based on the same criteria applied to other applicants; or

(h) any other gift, bequest, favor or loan, only if: the donor is not a party or other person who has come or is likely to come or whose interests have come or are likely to come before the judge; and if its value exceeds $150.00, the judge reports it in the same manner as the judge reports compensation in Section 100.4(H).

So that leaves one exception: Section 100.4(H). What is that? It follows at the same link. And the point of the regulation is that payments to judges should not “give the appearance of influencing the judge’s performance of judicial duties or otherwise give the appearance of impropriety.” And I can’t see how a gift that is worth many hundreds of thousands of dollars in legal fees, or over a million the way BigLaw likes to bill, would not give the appearance of impropriety. There are exceptions in that section, with a reporting limit of anything over $150. I don’t see any exception that fits this type of gift.

2. Next question: Did Judge Kaye commit an ethical violation by accepting such a gift from Wachtell Lipton on behalf of the judiciary?

3. And now on to Wachtell’s own problem: Will those who are litigating against Wachtell in New York’s state courts now move to have the firm disqualified because of their gift? At the very least, a horrible perception will arise when any Wachtell lawyer steps into the courtroom in any case to appear in front of his own client, with its apparent conflict of interests. I have to assume that anyone litigating against Wachtell will now look into making motions to disqualify the firm.

Now this is not an argument against judicial pay raises. Far from it. I think our judges are badly underpaid and have deserved he increase for many years. No, this goes only to the manner in which they are going about it by accepting a major gift from a law firm that litigates in front of these same judges, who are now their clients.

Even if the legal services fall into some legal loophole, and I haven’t seen it yet, it still seems to smell. Especially if I were a litigant where Wachtell was on the other side.

And one other, unrelated, issue. Among the defendants is the State of New York. But the State can only be sued in the Court of Claims, not the Supreme Court. Why did Wachtell, with the approval of the state’s top judge, bring the action in a court where it is not permitted to do so? (Explanation here: Doh!)

See also:

 

April 10th, 2008

New York’s Chief Judge Kaye Finally Brings Suit for Judicial Pay Raises

A year ago last April New York’s Chief Judge Judith Kaye threatened to bring a lawsuit because the judiciary hadn’t had a raise, even for the cost of living, for eight years. Their salaries remained stuck at $136K while first year associates at BigLaw top out over $200K including their bonuses.

Then in July she reversed herself, setting off a furious brawl among the judiciary when she said she would not bring the suit.

Then in December our Chief Judge Hamlet flip-flopped again and said she would bring suit.

Now apparently, a year after saying in a press release that the judiciary will not remain “docile in the face of the shabby treatment,” she is finally pulling the trigger and starting suit.

It is, of course, shameful that the legislature hasn’t acted to fix this problem of underpaying the judiciary. While no one expects them to be on a par with the private sector, one has to recognize that substantially underpaying them will ultimately cause the best of the bench to move into private practice, or to politely decline the opportunity if they do not yet wear the robes.

The suit, long awaited by the judiciary, is being filed today in Supreme Court in Manhattan (Supreme Court being the main trial court, not an appellate court). Of course, since every judge in the courthouse has a vested interest in seeing the case succeed, it remains to be seen who, exactly, will hear this thing.
——————–
And now…moments after posting the above, I am back…here is a copy of the filing…/Kaye-v-Silver.pdf

The suit names Sheldon Silver, head of the Assembly, Joe Bruno, head of the Senate, David Paterson, our newly minted Governor, and, of course, the State of New York.

According to the suit, “no other state or federal judges anywhere in the United States have gone longer without an increase in their compensation — not even a cost of living adjustment.”

While titled “Complaint,” the document doesn’t read like any Complaint you have likely seen before. It looks more like a manifesto of judicial pay raise problems before finally alleging in paragraph 12 that the current situation is unconstitutional as a violation of the separation of powers between the branches of government, with pay so low that judges are held hostage to political whims about which they have no say.

The suit also claims (paragraph 15) that by failing to account for cost of living increases, that judicial salaries have been lowered, in violation of the constitutional mandate that they judicial salaries “shall not be diminished.”

The suit is accompanied by a 12 page Memorandum of Law asking for a prompt trial. Also part of the filing is a seven page letter to Justice Edward Lehner asking for the same relief. What Lehner will do is anyone’s guess since he is part of the class that Kaye has sued on behalf of (see paragraph 19 of the Complaint).

Justice Lehner has been hearing another judicial pay raise case (Larabee v. Spitzer) brought by four other justices: New York City Family Court Judge Susan Larabee, New York City Criminal Court Judge Patricia Nunez, New York City Civil Court Judge Geoffrey Wright and Cattaraugus County Family Court Judge Michael Nenno.

Updates:

  • Senate: Blame It On Shelly (Silver) (Capitol Confidential)
  • Chief Judge Kaye Pulls The Trigger (Simple Justice)

    While framed as if it was really a summons and complaint, I don’t believe that is how it’s meant. This isn’t a complaint of a group that seriously expects to litigate and intends to win.

  • Judge Kaye Sues to Obtain Pay Increase for New York Judges (Sui Generis)

    Judge Kaye has thrown down the gauntlet

  • Breaking the Bank (Judicial Reports)

    The 30-page suit makes three primary claims: that the New York judiciary is entitled to “adequate compensation,” that State judges were unfairly discriminated against by the State Legislature, and that the judicial branch pay raises are unfairly attached to Legislative pay raises.

  • Wachtell and Judicial Ethical Violations in New York’s Judicial Pay Raise Suit? (This blog)

    Yesterday Chief Judge Judith Kaye brought a lawsuit for long sought judicial pay raises on behalf of the New York judiciary. In doing so, some ethical issues now present themselves based on the free legal services offered to the judiciary by Wachtell Lipton, an issue quite apart from the more obvious question of how any judge that is part of the plaintiff’s class can actually hear the case.