N.Y. Civil Practice Law & Rules § 8303-a: Costs upon frivolous claims and counterclaims in actions to recover damages for personal injury, injury to property or wrongful death

§ 8303-a. Costs upon frivolous claims and counterclaims in actions to

recover damages for personal injury, injury to property or wrongful

death.

(a) If in an action to recover damages for personal injury, injury to

property or wrongful death, or an action brought by the individual who

committed a crime against the victim of the crime, and such action or

claim is commenced or continued by a plaintiff or a counterclaim,

defense or cross claim is commenced or continued by a defendant and is

found, at any time during the proceedings or upon judgment, to be

frivolous by the court, the court shall award to the successful party

costs and reasonable attorney's fees not exceeding ten thousand dollars.

(b) The costs and fees awarded under subdivision (a) of this section

shall be assessed either against the party bringing the action, claim,

cross claim, defense or counterclaim or against the attorney for such

party, or against both, as may be determined by the court, based upon

the circumstances of the case. Such costs and fees shall be in addition

to any other judgment awarded to the successful party.

(c) In order to find the action, claim, counterclaim, defense or cross

claim to be frivolous under subdivision (a) of this section, the court

must find one or more of the following:

(i) the action, claim, counterclaim, defense or cross claim was

commenced, used or continued in bad faith, solely to delay or prolong

the resolution of the litigation or to harass or maliciously injure

another;

(ii) the action, claim, counterclaim, defense or cross claim was

commenced or continued in bad faith without any reasonable basis in law

or fact and could not be supported by a good faith argument for an

extension, modification or reversal of existing law. If the action,

claim, counterclaim, defense or cross claim was promptly discontinued

when the party or the attorney learned or should have learned that the

action, claim, counterclaim, defense or cross claim lacked such a

reasonable basis, the court may find that the party or the attorney did

not act in bad faith.