On August 27, 2025, the Second Department issued a decision in Long Chen v. Clean Air Car Serv. & Parking Corp., 2025 NY Slip Op. 04777, holding that a plaintiff’s loss at summary judgment was an insufficient basis, without more, to impose sanctions under 22 NYCRR 130-1.1, explaining:
In August 2017, the plaintiffs commenced this action against the defendants, inter alia, to recover damages for employment discrimination on the basis of national origin in violation of the New York State Human Rights Law and the New York City Human Rights Law. The Supreme Court granted the defendants’ motion for summary judgment dismissing the complaint. Thereafter, the defendants moved pursuant to 22 NYCRR 130-1.1 to impose sanctions upon the plaintiffs and their counsel. In an order entered May 26, 2020, the court, among other things, denied the defendants’ motion. The defendants appeal.
Pursuant to 22 NYCRR 130-1.1, a court, in its discretion, after a reasonable opportunity to be heard, may impose costs in the form of reimbursement for actual expenses reasonably incurred and reasonable attorneys’ fees, and/or sanctions against a party or the attorney for a party, or both, for frivolous conduct. Conduct is frivolous if it is undertaken primarily to delay or prolong the resolution of the litigation, or to harass or maliciously injure another. In determining whether the conduct undertaken was frivolous, the court shall consider 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.
Under the circumstances of this case, the plaintiffs’ commencement and prosecution of this action was not frivolous. Accordingly, the Supreme Court properly denied the defendants’ motion pursuant to 22 NYCRR 130-1.1 to impose sanctions upon the plaintiffs and their counsel.
(Internal quotations and citations omitted).