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SAGE REALTY v. PROSKAUER ROSE

275 A.D.2d 11 (2000)

713 N.Y.S.2d 155

SAGE REALTY CORPORATION et al., Appellants, v. PROSKAUER ROSE L. L. P. et al., Respondents.

Appellate Division of the Supreme Court of the State of New York, First Department.

September 7, 2000.

Attorney(s) appearing for the Case

David P. Land of counsel, New York City (Frank H. Penski, Constance M. Boland and Michael D. Kestan on the brief; Nixon Peabody, L. L. P., and Richard C. Stein, attorneys), for appellants.

Leon P. Gold of counsel, New York City (Nancy Kilson, David S. Krulwich and Robert A. Cohen on the brief; Proskauer Rose L. L. P., attorneys), pro se.

Elizabeth Storch of counsel, New York City (Nicholas H. De Baun on the brief; Brown & Wood, L. L. P., attorneys), for Nomura Securities International, Inc., respondent.

WILLIAMS, J.P., LERNER, ANDRIAS and FRIEDMAN, JJ., concur.

OPINION OF THE COURT

TOM, J.

The issue before us is whether plaintiffs intentionally and in bad faith destroyed tape recordings relevant to their claims and, if so, what is the proper remedy for plaintiffs' spoliation of evidence.

Defendant Proskauer was legal counsel for Robert and Melvyn Kaufman in connection with a complex mortgage-backed securities transaction. The Kaufman brothers were principals of plaintiff Sage Realty Corporation and various...

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