Rossbach v. Montefiore Medical Center

Background

This opinion determines the amount of a monetary sanction previously ordered against Andrea Rossbach, her attorney Daniel Altaras, and Altaras’s law firm, Derek Smith Law Group (DSLG). In an August 5, 2021 opinion, the court found by clear and convincing evidence that an image purporting to show text messages central to Rossbach’s workplace sexual-harassment claims had been fabricated. The court also found that Rossbach had committed perjury concerning the image and had destroyed evidence related to its creation. It imposed sanctions under the court’s inherent authority, 28 U.S.C. § 1927, and Federal Rule of Civil Procedure 37, including dismissal with prejudice and a compensatory monetary sanction covering defendants’ fees, costs, and expenses connected to addressing the misconduct.

Defendants then applied for $163,232.77: $108,095.50 in attorney fees and $55,137.27 in costs and expenses. The requested amount covered work involving an expert’s assessment of the disputed image, presenting the expert’s findings to Rossbach and her counsel, preparing for and conducting the evidentiary hearing, seeking sanctions, and preparing the fee application.

Fee calculation

The court used the lodestar method, which generally calculates a reasonable fee by multiplying a reasonable hourly rate by the number of reasonably expended hours. The court reviewed defendants’ motion papers, contemporaneous time records, and its familiarity with the case. It found that the requested work was generally connected to the conduct that led to the sanctions and that the hours were reasonable.

The court excluded one category of work: the $6,206.50 in attorney fees defendants incurred responding to Rossbach’s April 7, 2021 sanctions motion. Although the court described that motion as meritless and previously characterized it as frivolous, it exercised its discretion to exclude those fees. This reduced the total award from $163,232.77 to $157,026.27.

The court rejected Rossbach and her counsel’s other objections. It ruled that their challenge to imposing any monetary sanction, and their argument that only expenses incurred after the evidentiary hearing should count, were untimely because the August 5 opinion had already addressed those issues. The court also rejected their claim that defendants had billed excessive hours, explaining that Rossbach and Altaras’s conduct contributed to the amount and type of work required. The court found the billing records sufficiently clear and allowed fees for preparing the fee application.

Ruling

Judge Denise Cote granted in part defendants’ application for attorney fees, costs, and expenses. The defendants were awarded $157,026.27 from Rossbach, Altaras, and DSLG, who are jointly and severally liable. The clerk was directed to enter judgment for defendants and close the case.

Classification

This is a procedural order because it resolves an ancillary fee-and-sanctions issue rather than deciding the underlying workplace sexual-harassment claims on their merits.