Appellate Division, Second Department · September 16, 2026 · 2026 NY Slip Op 05304
Merchant Cash & Capital, LLC v Blueshyft, Inc.
Read the official decision: 2026 NY Slip Op 05304
Holding The Appellate Division reversed the lower court’s order imposing a sanction on nonparty Mark Yosef, finding that his conduct as counsel was not frivolous under 22 NYCRR 130-1.1(c). Consequently, the Supreme Court improvidently exercised its discretion in awarding costs and attorney’s fees against Yosef.
The court’s words
Conduct is frivolous under 22 NYCRR 130-1.1(c), inter alia, if it is "undertaken primarily to delay or prolong the resolution of the litigation, or to harass or maliciously injure another"
2026 NY Slip Op 05304, at the official text
Here, the conduct of Mark Yosef, the defendants' counsel, was not frivolous within the meaning of 22 NYCRR 130-1.1(c)
2026 NY Slip Op 05304, at the official text
Accordingly, the Supreme Court improvidently exercised its discretion in imposing a sanction against Yosef
2026 NY Slip Op 05304, at the official text
| Court | Appellate Division, Second Department |
|---|---|
| Decided | September 16, 2026 |
| Citation | 2026 NY Slip Op 05304 |
| Area of law | Civil Procedure |
| Week | Week ending September 19, 2026 |
| Official text | Official decision: 2026 NY Slip Op 05304 |
| Publication status | Slip opinions are uncorrected and subject to revision before publication in the Official Reports. |
| Source feed | New York slip opinion page |
| Law Watch record id | 528 |
Recommended citation
ESQ HQ, New York Law Watch, Merchant Cash & Capital, LLC v Blueshyft, Inc., 2026 NY Slip Op 05304 (Appellate Division, Second Department, September 16, 2026), https://esqhq.com/decisions/2026-ny-slip-op-05304/
How this record was made
Holding drafted by Law Watch’s in-house model, graded by three reviewers; every quotation verified word for word against the official text.
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