Tuesday, November 27, 2007

The Devil Pays Expenses

An order that compelled nonparty Prada to pay costs and expenses associated with the deposition of another nonparty (Martini) was affirmed by the New York Appellate Division for the First Judicial Department:

"Under the unique facts of this case, we agree with the motion court that Martini was entitled to be reimbursed for the expenses of her legal representation in connection with this deposition. We further agree that Prada's counsel, who had represented Prada at the time of Martini's wrongful termination lawsuit against it, was in conflict by virtue of that litigation and could not represent her at the deposition, especially since communications from Prada's law firm made clear that its loyalties lay with Prada, and its aid to Martini in preparing for her deposition would be governed by that loyalty. The court properly exercised its discretion, in its role of supervising discovery, under these unusual circumstances, to require Prada to reimburse Martini the costs of retaining independent counsel." (Mike Frisch)


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