Great Wall Acupuncture, P.C. v General Assur. Co.
2008 NY Slip Op 28350 (App. Term 2d Dept. 2008)
This case has been commented on numerous times before. It is one of many Mallela discovery motions that are granted as long as there is some shred of evidence that there is an improper incorporation issue. This follows the recent Appellate Division case of One Beacon Ins. Group, LLC v. Midland Medical Care, P.C., 2008 N.Y. Slip Op. 06813 (2d Dept. 2008), which held as follows:
“However, in opposition to the motion, the plaintiffs submitted sufficient evidentiary proof to raise an issue of fact as to whether Proscan was actually controlled by a management company owned by unlicensed individuals in violation of the Business Corporation Law”Accordingly, the appellants’ motion for summary judgment was properly denied with respect to all three causes of action, which allege fraudulent incorporation.”
“The Supreme Court properly granted that branch of the plaintiffs’ cross motion which was for disclosure of certain financial documents. Contrary to the appellants’ contention, the plaintiffs were not required to make a showing of “good cause” for such disclosure”
I like this case for the following quotation: “Although plaintiff contends that the court erred in denying the cross motion for an order sanctioning defendant and defendant’s counsel, in our opinion, the court providently exercised its discretion. We remind plaintiff’s counsel that “[f]rivolous conduct shall include the making of a frivolous motion for costs and sanctions” (Rules of the Chief Administrator [22 NYCRR] § 130-1.1). We further caution plaintiff’s counsel to refrain from including invective and ad hominem attacks in his papers.”
