On June 19, 2018, a restaurant operator filed suit in Manhattan against the law firm of Seyfarth Shaw for missing time sensitive deadlines on the disclosure of experts resulting in the preclusion of their experts at the time of trial. During legal proceedings before the trial the Judge allegedly admonished the law firm for repeatedly asking that discovery deadlines be extended. According to a report in the New York Law Journal, Seyfarth was allowed to withdraw from representing Blue Dog in the bankruptcy proceeding, but the Judge refused to award the firm any legal fees and criticized the firm for attempting to use a retaining lien as leverage for extra fees.
The restaurant operator, Blue Dog At 399, Inc (Blue Dog) was involved in an adversary proceeding in Bankruptcy Court with its landlord who owned the premises at 399 Park Avenue. Blue Dog had filed for bankruptcy claiming that as a result of its landlord's unreasonable conduct, it was unable to open the restaurant for business.
Blue Dog alleges that: "Seyfarth negligently, deceptively and repeatedly failed to identify experts and produce timely reports...leaving Blue Dog stranded without experts as to either liability or damages". Blue Dog claims $13,500,000 in compensatory damages and asks that the Court treble those damages to $40,000,000 based on a claimed violation of Judiciary Law Section 487. This statute allows, under limited circumstances treble damages and attorney's fees to victim's of attorney deceit.