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EDITH SHAW MARCUS, ET AL., Plaintiffs-Appellants, v. MARTIN BRESSLER, ET AL., Defendants-Respondents, LARRY SHAW, ET AL., Defendants.

The record supports the Judicial Hearing Officer's conclusion that plaintiffs' decedent, the creator of the iconographic "Seven Year Itch" image of Marilyn Monroe, in a billowing white skirt, commenced and maintained this action (since assumed by the representatives of his estate) against his former intellectual property litigation counsel "in bad faith without any reasonable basis in law or fact" and without any "good faith argument for an extension, modification or reversal of existing law" (see, CPLR 8303-a[c][ii]), and that he knew or should have known (see, McGill v. Parker, 179 A.D.2d 98, 111), prior to pleading his causes of action, that there was no reasonable basis for them (see, Perlbinder v. Jakubovitz, 239 A.D.2d 294, 295). In light of that determination, the imposition of sanctions was proper (see,Nyitray v. New York Ath. Club, 274 A.D.2d 326, 712 N.Y.S.2d 89). Further, in view of the unique facts of this case, we find the amount of sanctions, and the Judicial Hearing Officer's exercise of discretion in imposing sanctions, appropriate (see, Gross v. Kurk, 250 A.D.2d 810, 811, lv denied, 92 N.Y.2d 811).

As to the individual defendant's counterclaim, the false charge of larceny was slanderous per se (see, Liberman v. Gelstein, 80 N.Y.2d 429, 435), and defendant, while not required to show special damages, was entitled to seek punitive damages (see, Gatz v. Otis Ford, 274 A.D.2d 449, 450, 711 N.Y.S.2d 467, 468). Acts of malice, apart from the instance of slander on which the action was brought, were probative of whether or not plaintiff bore defendant common-law malice, which is required to justify punitive damages (see, Prozeralik v. Capital Cities Communications, 82 N.Y.2d 466, 479). All the same, the purpose of punitive damages on a slander claim should be to punish the slander itself, since there must be a reasonable relationship between punitive damages and actual damages (see, e.g., McIntyre v. Manhattan Ford, Lincoln-Mercury, 256 A.D.2d 269, 270-71, appeal dismissed, 93 N.Y.2d 919, lv denied, 94 N.Y.2d 753). Here, it is clear that the punitive damages award was intended to punish not merely the act of slander that was the gravamen of the counterclaim, but a broad range of malicious behavior, including numerous verbal statements that were plainly "loose, figurative or hyperbolic" non-actionable expressions of opinion (see, Miss American Petite, Inc. v. Fox Broadcasting Co., 262 A.D.2d 33, 34). In our view, the punitive damages award and the award of sanctions in an identical amount constitute a double recovery. For that reason, we find that the decision to award punitive damages on the counterclaim was an improvident exercise of the Judicial Hearing Officer's discretion (see, Loughry v. Lincoln First Bank, 67 N.Y.2d 369, 378), and we exercise our discretion on review of a non-jury award to render an independent judgment as warranted by the facts in deleting it (see, e.g.,Allen v. Black, 275 A.D.2d 207, 712 N.Y.S.2d 487.

We have considered plaintiffs' remaining appellate arguments and find them unavailing.

THIS CONSTITUTES THE DECISION AND ORDER OF SUPREME COURT, APPELLATE DIVISION, FIRST DEPARTMENT.

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MARCUS v. BRESSLER
(Nov 21, 2000)