Saadeh v. Kagan
- Paul Engelmayer
- 1:20-cv-01945
- U.S. District Court · Southern District of New York
- 4
In Saadeh v. Kagan, Judge Netburn denied reconsideration of a decision refusing attorney’s fees for discovery.
The ruling leaves in place the denial of Rafiс Saadeh’s request for attorney’s fees related to the discovery. It also leaves unchanged the denial of sanctions against Michael Kagan, Joshua Kagan, and John Maggio.
What happened
In Saadeh v. Kagan, Rafiс Saadeh asked the court to reconsider its earlier decision denying sanctions and attorney’s fees related to discovery about transferred assets in litigation in the United Kingdom.
Saadeh argued that the discovery was conducted under a court order and that his fees should be reimbursed. The court said he had requested permission for the discovery, and that he had not identified overlooked law or facts supporting a different result.
Judge Sarah Netburn denied the motion for reconsideration. The earlier conclusion that the defendants’ misconduct did not legally warrant sanctions therefore remained in place, and the clerk was directed to close the motion.
The detailed version
- Saadeh v. Kagan · No. 1:20-cv-01945
- Paul Engelmayer
- Aug. 7, 2023
Background
Rafiс Saadeh moved for reconsideration of the court’s earlier order denying sanctions against Michael Kagan, Joshua Kagan, and Joshua Kagan’s attorney, John Maggio. The motion focused on attorney’s fees for discovery concerning the transfer of assets related to litigation in the United Kingdom. Saadeh did not seek reconsideration of the court’s denial of sanctions under Federal Rule of Civil Procedure 16 or 28 U.S.C. § 1927. The court treated his arguments as invoking the standard allowing reconsideration to prevent a serious unfairness.
Standard for reconsideration
Under Local Civil Rule 6.3 and Federal Rule of Civil Procedure 59(e), reconsideration generally requires an intervening change in controlling law, newly available evidence, or a need to correct a clear error or prevent serious unfairness. The standard is strict, and reconsideration is generally denied unless the moving party identifies controlling decisions or information the court overlooked.
Court’s analysis
Saadeh cited cases stating that attorney’s fees may be awarded when sanctions are warranted. The court agreed that this general proposition was not disputed, but emphasized that it had already concluded sanctions were not warranted. Saadeh did not identify overlooked legal precedent or facts that justified changing that decision.
Saadeh also argued that the discovery should be paid for because it was conducted under a court order. The court found no authority requiring the party opposing court-authorized discovery to pay for it. It further clarified that the court had not required all of the discovery: Saadeh had repeatedly requested permission to conduct it, and the court granted that request. The court had ordered Michael and Joshua Kagan to produce documents and authorized depositions if counsel considered them necessary.
After the discovery, the court found that Michael Kagan had acted in bad faith and that John Maggio had acted inconsistently with his professional duty of candor. But it also concluded that those actions did not warrant sanctions under the law. The court therefore found no legal basis to compensate Saadeh for the fees he incurred investigating the conduct.
Disposition
The court DENIED Saadeh’s motion for reconsideration and directed the Clerk of Court to terminate the motion at ECF No. 243.
Read the full 4-page opinion on CourtListener, the free public archive maintained by the Free Law Project.