Andrew Delaney v. HC2, Inc., et al.

New York Judiciary Law § 487 provides a civil treble-damages remedy for an attorney who is guilty of deceit or collusion with intent to deceive a court or party. Petitioner brought a § 487 claim based on alleged litigation misconduct occurring in proceedings connected with New York. The district court held that § 487 does not reach attorney conduct occurring in federal proceedings and, alternatively, held that the amended complaint did not plead actionable deceit with sufficient factual particularity. The Second Circuit affirmed, expressly declining to decide the threshold question whether § 487 reaches federal-court conduct and instead affirming on the pleading ground. The questions presented are:

1. Whether New York Judiciary Law § 487 applies to alleged attorney deceit or collusion occurring in a federal court proceeding located within New York, where the New York Court of Appeals has not resolved that question and the federal courts applying New York law have reached materially different conclusions or assumptions.

2. Whether, under Erie Railroad Co. v. Tompkins and the Rules Enabling Act, a federal court sitting in diversity may deny a state-law cause of action on a categorical federal-forum rule that is not contained in the text of the state statute and has not been adopted by New York's highest court.

3. Whether a federal court may affirm dismissal of a state-law claim as insufficiently pleaded where the appellate court itself recognizes that the underlying state-law question is unsettled and the alleged misconduct concerns concrete statements and AH 14838430.1.5-82 filings made in judicial proceedings, rather than merely conclusory assertions of misconduct.