Bassel v. Aetna Health Insurance Company of New York

Background

The court had scheduled oral argument on the defendants’ motion to dismiss. It also directed the parties to be prepared to address whether the plaintiff’s counsel should be required to explain why sanctions should not be imposed. The court identified concerns including alleged misstatements of law and arguments copied verbatim from cases that were largely inapplicable or outdated.

Before the scheduled argument, the parties submitted a stipulation of voluntary dismissal, which the court ordered. That dismissal closed the case and made the defendants’ motion to dismiss moot, meaning the court no longer needed to decide that motion.

Ruling

The court held that the voluntary dismissal did not eliminate the separate question of sanctions. It stated that it retained authority to consider whether sanctions were appropriate for conduct occurring in the case.

The court ordered the plaintiff’s counsel to show cause—that is, to explain in writing—by January 27, 2022, why sanctions should not be imposed in connection with the submissions opposing the motion to dismiss. The defendants were not required to respond but could file a response by February 3, 2022. The court did not impose sanctions in this opinion or decide whether sanctions would ultimately be imposed.