The Courtroom held that this lawsuit arose out of a years-long investigation by the plaintiff, the New York State Lawyer Basic’s Workplace (“OAG”) into sure enterprise practices engaged in by the defendants since 2011. The person and entity defendants dedicated repeated and protracted fraud by making ready, certifying, and submitting false and deceptive monetary statements to lenders and insurance coverage firms, thereby violating New York State Administrative Legislation § 63(12).
In its resolution and order dated September 26, 2023, this Courtroom granted abstract judgment to the plaintiffs solely on legal responsibility and the primary reason behind motion.
On February 16, 2024, following a three-month trial, this Courtroom issued a verdict and order following a non-jury trial, discovering the defendants liable on the remaining six causes of motion. The court docket ordered sure injunctive reduction, together with the continuation of the decide’s injunction. Barbara Jones (Ret.) As an unbiased monitor for the Trump Group, the court docket is obligated to take care of jurisdiction over the motion regardless that the trial is over.
On Could 8, 2024, NBC New York reported that Adam Leitman Bailey, an lawyer unconnected with the case, boasted that weeks earlier than I issued the choice and order following the nonjury trial, he “Search help from the presiding decide.”
On July 11, 2024, this Courtroom ordered the defendants, partially, to challenge a subpoena to Bailey directing him to reveal any paperwork or communications in his possession involving, discussing, or in any method referring to the litigation.
The defendants now file a movement beneath New York Administrative Legislation 22 100.3(E)(1) asking that I recuse myself or that one other decide maintain an evidentiary listening to concerning these communications and their potential affect on the court docket’s resolution.
Unsolicited one-sided communications
Someday round February of this yr, a couple of weeks earlier than I issued my posttrial resolution and order, on the finish of my work day, I left the dressing room within the courthouse at 60 Middle Avenue and took the elevator right down to the primary flooring. There, on the outskirts of the well-known Rotunda, Bailey struck up a dialog with me and started haranguing me about Part 63(12) of the Administrative Code. He didn’t relay any alleged information.
{The irony, after all, is that the defendants whose place Bailey ostensibly advocates are shifting for me to recuse themselves, whereas the plaintiffs whose place Bailey ostensibly advocates disputes are opposing the movement. This reveals that the defendant was motivated not by ethical concerns however by searching for a chance to reverse the trajectory and consequence of the case.
Till then, I thought of Bailey an expert acquaintance and a distant good friend. I used to be shocked by his sudden look and intense phrases, and I simply instructed him he was flawed. As I walked down the decide’s stairs to avenue degree, he was nonetheless trailing behind me, persevering with to buzz. I bought within the automotive, did not say one other phrase (besides perhaps “goodbye”), and left.
For some three and a half years earlier than this disagreeable incident, beginning in September 2020, I carried out an in-depth examine of part 63(12) and issued a variety of rulings primarily based on it, together with preliminary injunctions and Abstract judgment resolution. I definitely don’t want landlord-tenant legal professionals ranting about this. I didn’t provoke, welcome, encourage, interact in, or be taught from, a lot much less take pleasure in, Bailey’s tirades. As Bailey bizarrely, falsely and defamatoryly claimed, I didn’t base any of my rulings on this. After three and a half years of analysis and immersion in Part 63(12), your entire 90-second incident was, within the vernacular, “no burger”. I may need forgotten all of this by now if Bailey hadn’t tried to bolster his repute as somebody who may affect judges (which might have been unethical and doubtless unlawful, however Bailey nonetheless publicly boasted about it).
Due to the widespread information protection of this trial, passers-by usually acknowledged and confronted me on the road, at events, in parks, in eating places, and on public transportation. Generally their unsolicited phrases are complimentary. Generally they’re derogatory. They may by no means affect my ruling. Like my pressured encounter with Bailey, I felt no have to report these fleeting incidents.
The defendants claimed to depend on the rule that judges might seek the advice of consultants solely beneath sure situations. I’ve not consulted Bailey and I definitely don’t take into account him an professional on Administrative Legislation part 63(12)….
Defendant’s protection
In help of their movement, the Defendants cite a collection of op-eds and blogs (from Wall Avenue Journal op-eds, Nationwide Evaluate, Newsmax, the New York Submit, YouTube movies, and the Warlock Conspiracy) criticizing the Courtroom’s authorized selections. Defendants collectively use as “proof” that “this Courtroom’s closing resolution definitely undermines public confidence within the integrity of New York’s authorized system.” As this Courtroom has detailed in its earlier orders, denying defendant’s movement for a mistrial, “Editorial Opinion These condemning the plaintiff’s case…are irrelevant and don’t have any evidentiary worth.
Moreover, the instances cited by the defendants in help of recusal didn’t advance their claims.
The defendant claimed to depend on George’s enterprise (NY 2013), in help of their declare that the conduct alleged right here is “opposite to the function of a decide.” There, the decide presided over a case by which he had shut private, skilled and monetary relationships with a celebration however didn’t disclose that relationship. As with each case that the defendants recuse themselves from citing, the information are utterly completely different than these offered on this article.
The defendant additionally claimed to depend on Levin downside (NY 1989), by which a decide stayed proceedings in favor of 1 celebration and “by his conduct… conveyed in ex parte communications the impression that his resolution was primarily based not on benefit however on his allegiance and loyalty to the events loyalty”. [a] Former political chief.
The defendant additionally cited Ayers incident (NY 2017), the presiding decide repeatedly initiated ex parte dialogue in an try to affect the favorable disposition of his daughter’s site visitors ticket. I didn’t provoke this encounter, I didn’t have a dialog, and neither I nor any of my members of the family have a private curiosity on this case.
exist folks v leicester (NY Simply. Ct. 2002), the decide obtained ex parte communications from a celebration to the litigation at dwelling.
exist Warnerhead Incident (NY 1988), judges usually sought out and interviewed witnesses exterior the courtroom and made rulings primarily based on their unsworn communications.
defendant’s reliance Fuchsberg Affair (NY Jud. Ct. 1978), which was flawed as a result of in that case the decide presided over a case by which he had an undisclosed monetary curiosity and the decide had engaged in discussions with fellow regulation professors on a minimum of 12 pending instances. Negotiate.
exist Murphy incident (NY 1993), judges are “careles[s] Coping with public funds” deposited in court docket…
In abstract, all defendants’ instances have been clearly inconsistent, essentially inappropriate, or refused to recuse themselves.
Lastly, the defendants emphasised their declare: “Primarily based on public studies, it’s now clear that this court docket can also be beneath investigation by the Fee on Judicial Conduct.” Nevertheless, I’ve not been contacted by the Fee and I’m not conscious of any such investigation. Unsubstantiated investigative allegations can not require disqualification.
focus on
“Pursuant to Part 14 of the Judiciary Act, the trial decide is the only real arbiter of a problem within the absence of lawful disqualification.”
Since there isn’t any grounds for necessary recusal right here, it is as much as me and my conscience to determine whether or not this 90-second, unsolicited diatribe was made by a non-partisan particular person with whom I’m utterly acquainted and totally immersed. carried out in regulation. I hereby state unequivocally that this isn’t the case.
The Advisory Council on Judicial Ethics states instantly {that a} decide has no moral obligation to reveal an tried ex parte communication by a non-party who doesn’t allege any related information however merely expresses an opinion about how the matter needs to be dealt with view. Advisory opinions 98-144accessible at https://www.nycourts.gov/ipjudicialethicopinions/98-144_.htm
additionally, “[n]o A decide might recuse himself primarily based on alleged misconduct dedicated by others. R&R Capital LLC v Merritt (NY Sup. Ct. 2008) (noting that “[b]As a result of this Courtroom has no prejudice in opposition to both celebration to this dispute however signifies who would be the prevailing celebration in our resolution on the problem earlier than us, there isn’t any purpose why a recusal needs to be granted”). Subsequently, recusal primarily based on Bailey’s sole conduct, which didn’t affect my resolution, is unfounded.
and,
[W]Recusal shouldn’t be ordered if there isn’t any purpose for recusal, particularly if it will result in prejudice. certainly, “‘[a] A decide is obligated to not recuse himself or herself, even when prosecuted in connection together with his or her duties, until she or he is satisfied that she or he is unable to discharge his or her duties with full impartiality, both the truth is or in look.
I’ve presided over this continuing, and the particular proceedings that preceded it, for greater than three and a half years. There are 2,624 particular person entries within the two information. I reviewed tens of 1000’s of paperwork in digicam (and out), all through in depth discovery, movement follow, and trials. Recusal now would deliver large prejudice to the events, the general public and the judicial course of.
I’m as assured in my capability to proceed serving impartially as I’ve ever been.
search different reduction
As an alternative choice to recusal, the defendants requested an evidentiary listening to earlier than one other decide of the court docket “as to the reality of Mr. Bailey’s allegations and the court docket and [the Office of Court Administration’s] deny. The principles would solely empower Bailey, who has been accused of wrongdoing, to confront witnesses in opposition to him throughout an investigation into alleged skilled misconduct.
