NEW YORK (Legal Newsline) - A New York personal injury law firm now faces malicious prosecution claims after suing a business it said reached under-the-table settlements with its clients.
Lee Litigation Group sued Benjamin Steak House in February in New York County Supreme Court, alleging it communicated with employees who had wage-and-hour claims without the firm's consent.
The firm sent a potential complaint on behalf of two clients on Aug. 3, 2020, but later that month, the restaurant reached $10,000 settlements without negotiating with Lee Litigation Group, the suit says.
In response, in August, Benjamin Steak House countered with claims for malicious prosecution and abuse of process.
"Here, Plaintiff's purpose is plainly to improperly hold Defendants accountable for the actions and decisions of Plaintiff's own clients, rather than recoup or recover redress for wrongs allegedly committed by Defendants and alleged resulting injuries that might allegedly have been sustained by the plaintiff," the restaurant's lawyers wrote.
"Were Plaintiff's purpose simply to actually recover the monies it claims that its clients owe Plaintiff, Plaintiff would be pursuing legal action against them."
Lee Litigation Group says these counterclaims must be dismissed in a motion filed in August. It says it has never been a plaintiff in a lawsuit against Benjamin Steak House until this one and that the restaurant can't prove the case was brought with malice.
Considering a motion to dismiss for failure to join necessary parties has already been rejected, Benjamin Steak House can't prove Lee's lawsuit is without merit, the firm says.
"Defendants will be wholly unable to reasonably argue that the Client’s prior action terminated in favor of the Defendants," Lee's motion says.
(T)hat action was voluntarily dismissed without prejudice after settlement between the Clients and the Defendants. Defendants are aware that the rarely brought action of civil malicious prosecution requires a favorable termination, and that a voluntary dismissal without prejudice after settlement could never satisfy this element.
"It is self-evident that a dismissal without prejudice after a settlement where Defendants paid the Clients is clearly not a favorable termination on the merits!"
Lee also wants Benjamin's lawyer, Jack Spinella, disqualified because he will be a necessary witness, given his involvement in the settlement of the wage-and-hour claims.