August 3, 2012

Sanctions Against Music Company For Frivolous Case

Arabesque Recordings, LLC v. Capacity, LLC, No. 650277/2006 (Sup. Ct., N.Y. Co. Commercial Division, July 31, 2012) (Bransten, J.S.C.)  (decision here).

Plaintiff music distributor/seller sued defendant warehouse and distribution center for over $2 million for breach of the warehousing agreement.  A bench trial was had.  After approximately 1 hour of testimony, plaintiff moved to dismiss its own case with prejudice on the ground that it lacked any evidence to support its claim.  The court granted the motion, and granted defendant leave to move for sanctions.  Defendant moved for sanctions equaling its legal fees and costs.  The court found that plaintiff's witness's testimony was belied by his own deposition testimony and undisputed documentary evidence, and that continuation of the case was frivolous.  The court sanctioned plaintiff for defendant's legal fees and costs.