(a) The court, in its discretion, may
award to any party or attorney in any civil action or proceeding before the
court, except where prohibited by law, costs in the form of reimbursement for
actual expenses reasonably incurred and reasonable attorney's fees, resulting
from frivolous conduct as defined in this Part. In addition to or in lieu of
awarding costs, the court, in its discretion may impose financial sanctions
upon any party or attorney in a civil action or proceeding who engages in
frivolous conduct as defined in this Part, which shall be payable as provided
in section
130-1.3 of this Subpart. This Part
shall not apply to town or village courts, to proceedings in a small claims
part of any court, or to proceedings in the Family Court commenced under
article 3, 7 or 8 of the Family Court Act.
(b) The court, as appropriate, may make
such award of costs or impose such financial sanctions against either an
attorney or a party to the litigation or against both. Where the award or
sanction is against an attorney, it may be against the attorney personally or
upon a partnership, firm, corporation, government agency, prosecutor's office,
legal aid society or public defender's office with which the attorney is
associated and that has appeared as attorney of record. The award or sanctions
may be imposed upon any attorney appearing in the action or upon a partnership,
firm or corporation with which the attorney is associated.
(c) For purposes of this Part,
conduct is frivolous if:
(1) it
is completely without merit in law and cannot be supported by a reasonable
argument for an extension, modification or reversal of existing law;
(2) it is undertaken primarily
to delay or prolong the resolution of the litigation, or to harass or
maliciously injure another; or
(3) it asserts material factual
statements that are false.
Frivolous conduct shall include the
making of a frivolous motion for costs or sanctions under this section. In
determining whether the conduct undertaken was frivolous, the court shall
consider, among other issues the circumstances under which the conduct took
place, including the time available for investigating the legal or factual
basis of the conduct, and whether or not the conduct was continued when its
lack of legal or factual basis was apparent, should have been apparent, or was
brought to the attention of counsel or the party.
(d) An award of costs or the
imposition of sanctions may be made either upon motion in compliance with CPLR
2214 or 2215 or upon the court's own initiative, after a reasonable opportunity
to be heard. The form of the hearing shall depend upon the nature of the
conduct and the circumstances of the case.