Timing Is Everything? -- An Example of How a Case Can Turn on a Procedural Issue
For our lawyer colleagues, it is no news that a case can be won or lost on a procedural issue. For our readers who are managers and business owners, here is an example of a case that can cause you to re-think that settlement offer you turned down.
New York Civil Law blog brought the case to our attention in a recent post (“The New York Court of Appeals Revisits Timing for Summary Judgment Motion”). The case was Crawford v. Liz Claiborne, Inc., 2007 N.Y. Slip Op. 08301, 45 A.D. 3d 284 (Sup. Ct. N.Y. Co.) . According to NYCL, the case is about to be heard by the Court of Appeals, the highest appellate court in New York.
A quick review of legal concepts for our nonlawyer readers: summary judgment is a very common procedure used to decide a case based on papers because there are no material issues for trial. Under New York procedural law, the motion requesting summary judgment must be made within 120 days after filing a “Note of Issue” which is essentially a paper certifying the case is ready for trial.
In this case, the local court had its own rule, which it is allowed to have under the law; the local rule (of Supreme Court, New York County) set a deadline of 60 days after the Note of Issue. And, the defendant made its summary judgment motion but missed the 60-day local deadline while making the 120-day statewide deadline.
A few complicating facts: The missed deadline was by only a few days. The plaintiff opposed the motion only on the procedural ground that it was untimely. The “local rule,” according to the dissenting opinion, was ambiguous because there was a local court rule, which changed around that time, as well as a part (individual judge's) rule and the scheduling order did not specify a date or which rule but said simply “per local rule.”
The trial court, apparently having determined it could overlook the missed 60-day deadline, decided the motion. Its decision was to dismiss the complaint. The Appellate Division, First Department (a New York intermediate appellate court), reversed and held that an “oversight” of the local rule is not the “good cause” (a satisfactory explanation for being late) necessary to consider the motion after the local deadline is missed. The appellate court, in an unusual move, also directed transfer of the case to another trial judge.
For lawyers, this case presents an interesting and important procedural issue.
For clients, this case is a classic, concrete reminder of the inherent uncertainties of litigation. The defendant has a victory. Whether or not that victory will stand or the case goes to trial will now depend on the Court of Appeals’ ruling on the strictly procedural issue involving the missed local time deadline.
After all, what is the lawsuit about? We've gotten to this point in the discussion without needing to mention it. Actually, this is a discrimination case based on sexual orientation. It almost doesn't matter because now the controversy centers on the procedural rule.
Better see if that settlement offer is still on the table.
Image: 60 Centre Street, NY, Supreme Court; from NY Supreme Court Website.
