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IT IS HEREBY ORDERED that costs are taxed in the amount of $332.00 in favor of Appellee Teri Buhl and in the amount of $367.60 in favor of Appellees Dow Jones & Company, Inc., DBA Barron's, Inc. and William \"Bill\" Alpert..(nd) (Entered: 09/29/2023)","tags":[]},{"resource_uri":"https://www.courtlistener.com/api/rest/v4/docket-entries/358449721/","id":358449721,"docket":"https://www.courtlistener.com/api/rest/v4/dockets/17124353/","recap_documents":[{"resource_uri":"https://www.courtlistener.com/api/rest/v4/recap-documents/365010136/","id":365010136,"tags":[],"absolute_url":"/docket/17124353/167/kesner-v-buhl/","date_created":"2023-07-11T10:13:08.394673-07:00","date_modified":"2023-11-07T18:38:14.442914-08:00","sha1":"","page_count":null,"file_size":null,"filepath_local":null,"filepath_ia":"","ia_upload_failure_count":null,"thumbnail":null,"thumbnail_status":0,"plain_text":"","ocr_status":null,"date_upload":null,"document_number":"167","attachment_number":null,"pacer_doc_id":"127033672084","is_available":false,"is_free_on_pacer":null,"is_sealed":null,"document_type":1,"description":"USCA Mandate","acms_document_guid":""}],"date_created":"2023-07-11T10:13:08.383036-07:00","date_modified":"2023-11-07T18:38:14.429656-08:00","date_filed":"2023-07-11","time_filed":"11:09:13","entry_number":167,"recap_sequence_number":"2023-07-11.001","pacer_sequence_number":567,"description":"MANDATE of USCA (Certified Copy) as to 163 Notice of Appeal, filed by Harvey J. 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Kesner. Document filed by Teri Buhl. The Clerk may tax costs 14 days after this filing. Objections to Bill of Costs due by 6/16/2022.(Paul, Wesley) Modified on 6/24/2022 (laq). (Entered: 06/02/2022)","tags":[]},{"resource_uri":"https://www.courtlistener.com/api/rest/v4/docket-entries/194107959/","id":194107959,"docket":"https://www.courtlistener.com/api/rest/v4/dockets/17124353/","recap_documents":[{"resource_uri":"https://www.courtlistener.com/api/rest/v4/recap-documents/199743315/","id":199743315,"tags":[],"absolute_url":"/docket/17124353/165/kesner-v-buhl/","date_created":"2022-05-02T14:09:11.161336-07:00","date_modified":"2023-11-07T18:38:14.368762-08:00","sha1":"7e32104c7f6a03f75f47de28a1b2371f4821341c","page_count":4,"file_size":144427,"filepath_local":"recap/gov.uscourts.nysd.536561/gov.uscourts.nysd.536561.165.0.pdf","filepath_ia":"https://archive.org/download/gov.uscourts.nysd.536561/gov.uscourts.nysd.536561.165.0.pdf","ia_upload_failure_count":null,"thumbnail":null,"thumbnail_status":0,"plain_text":"Case 1:20-cv-03454-PAE Document 165 Filed 05/02/22 Page 1 of 4\n\nUNITED STATES DISTRICT COURT\nSOUTHERN DISTRICT OF NEW YORK\n\nHARVEY J. KESNER,\n\nPlaintiff,\n20 Civ. 3454 (PAE)\n\nOPINION & ORDER\n\nTERI BUHL,\n\nDefendant.\n\nPAUL A. ENGELMAYER, District Judge:\n\nOn April 11, 2022, the Court granted plaintiff Teri Buhl\u2019s motion for summary judgment\nagainst defendant Harvey J. Kesner in its entirety, and granted Kesner\u2019s motion to dismiss Buhl\u2019s\ncounterclaim. See Dkt. 155. On March 24, 2022, the Court received a letter motion from Buhl\nseeking sanctions against Kesner, and his attorney, Steven Biss, Esq. See Dkt. 159. On March\n31, 2022, the Court received a response from Kesner and Biss opposing the sanctions motion.!\nSee Dkt. 162.\n\nFor the reasons that follow, the Court denies Buhl\u2019s motion for sanctions.\n\nI. Applicable Legal Standards\n\nIf \u201cthe court determines that Rule 11(b) has been violated, the court may impose an\nappropriate sanction on any attorney, law firm, or party that violated the rule or is responsible for\nthe violation.\u201d Fed. R. Civ. P. 11(c). In its discretion, a Court can award such sanctions where\n\nthe filing is \u201cbeing presented for any improper purpose, such as to harass, cause unnecessary\n\n1 On April 8, 2022, after the motion and opposition for sanctions were filed, Kesner appealed the\ngrant of summary judgment. See Dkt. 163.\n\fCase 1:20-cv-03454-PAE Document 165 Filed 05/02/22 Page 2 of 4\n\ndelay, or needlessly increase the cost of litigation;\u201d the claims are \u201c[un]warranted by existing law\nor by a nonfrivolous argument for extending, modifying, or reversing existing law or for\nestablishing new law;\u201d and/or \u201cthe factual contentions\u201d lack \u201cevidentiary support.\u201d Jd. 11(b).\n\u201cSuch an award serves two ends: it \u2018vindicat[es] judicial authority,\u2019 and it makes the wronged\nparty \u201cwhole for expenses caused by his opponent\u2019s obstinacy.\u2019\u201d Jnt\u2019l Techs. Mktg., Inc. vy.\nVerint Sys., Ltd., Nos. 19-1031, 19-1297, 2021 WL 968819, at *4 (2d Cir. Mar. 16, 2021)\n(quoting Chambers v. NASCO, Inc., 501 U.S. 32, 46 (1991)).\n\n\u201cBecause of its potency, however, a court\u2019s inherent power [to sanction] \u2018must be\nexercised with restraint and discretion.\u2019\u201d Jd. at *5 (quoting Chambers, 501 U.S. at 44). When it\ncomes to monetary sanctions, a court should sanction only \u201c\u2018bad faith, vexatious[], [or]\nwanton{]\u2019 acts or actions undertaken for \u2018oppressive reasons.\u2019\u201d Jd. (quoting Chambers, 501 US.\nat 45-46). \u201c[S]eparating frivolous claims from mere zealous advocacy can be difficult,\u201d and thus\ncourts are required \u201cto make two findings before imposing such sanctions: first, that \u2018the\nchallenged claim was without a colorable basis\u2019 and, second, that \u2018the claim was brought in bad\nfaith, 7.e., motivated by improper purposes such as harassment or delay.\u2019\u201d Jd, (quoting Enmon v.\nProspect Cap. Corp., 675 F.3d 138, 143 (2d Cir. 2012)). \u201c[B]oth findings \u2018must be supported by\na high degree of specificity in the factual findings.\u2019\u201d Enmon, 675 F.3d at 143 (quoting Wolters\nKluwer Fin. Servs., Inc. v. Scivantage, 564 F.3d 110, 114 (2d Cir. 2009)).\n\nA claim is without colorable basis when it \u201clacks any legal or factual basis.\u201d Wolters\nKluwer Fin. Servs., 564 F.3d at 114. \u201cConversely, a claim is colorable when it has some legal\nand factual support, considered in light of the reasonable beliefs of the individual making the\nclaim.\u201d Schlaifer Nance & Co. v. Est. of Warhol, 194 F.3d 323, 337 (2d Cir. 1999) (quotations\n\nomitted). As to the bad-faith requirement, bad faith \u201cmay be inferred \u2018only if actions are so\n\fCase 1:20-cv-03454-PAE Document 165 Filed 05/02/22 Page 3 of 4\n\ncompletely without merit as to require the conclusion that they must have been undertaken for\nsome improper purpose such as delay\u2019\u201d or harassment. Jd. at 336 (quoting Shafii v. Brit.\nAirways, PLC, 83 F.3d 566, 571 (2d Cir. 1996)). In determining whether such conduct is\nsanctionable, a \u201ccourt should primarily focus on the intent of the potentially sanctionable\nconduct, not on its effect.\u201d Int'l Techs. Mktg., 2021 WL 968819, at *5.\n\n1. Analysis\n\nBuhl moves for sanctions on the ground that Kesner and Biss, \u201c[h]ad absolutely no basis\nwhatsoever to bring any claims against Buhl.\u201d See Dkt. 159. Buhl emphasizes that Kesner did\nnot take any discovery. According to Buhl, Kesner\u2019s failure to voluntarily dismiss the case while\nnot seriously pursuing it \u201ccan only be interpreted as an attempt to extract time and resources\naway from Buhl.\u201d See id.\n\nAlthough Buhl\u2019s application presents a close question, the Court finds sanctions\nunwarranted.\n\nHere, Kesner\u2019s defamation claims against Buhl were, in part, colorable, even if they\nultimately did not prove meritorious. The Court sustained some of Kesner\u2019s claims on Buhl\u2019s\nmotion to dismiss\u2014those based on the allegation in Buhl\u2019s blogs that Kesner had committed a\ncrime. See Dkt.114. And the record contained\u2014even without affirmative discovery developed\nby Kesner\u2014a modicum of evidence of casual reporting by Buhl, including the allegation by an\nanonymous source that his statements had been falsely reported. See Dkt. 155 at 5 (discussing\nthe claim by Daniel Fisher that statements for which he believed he was Buhl\u2019s source were not,\nin fact, ones he had made). Although the Court ultimately found insufficient evidence of actual\nmalice for Kesner\u2019s claims to reach a jury, there was just enough indicia of sloppiness among\n\nBuhl\u2019s blogs to make his defamation claim non-frivolous, And although Buhl\u2019s accusation of\n\fCase 1:20-cv-03454-PAE Document 165 Filed 05/02/22 Page 4 of 4\n\ncriminality on Kesner\u2019s party had strong circumstantial support, Kesner could also fairly note\nthat no prosecutor or securities regulatory authority had brought charges against him arising from\nhis dealings with his client, Barry Honig.\n\nMore important, the Court does not find evidence of bad faith on Kesner\u2019s or Biss\u2019s part\nin bringing or pursuing the defamation claims. \u201cA finding of bad faith, and a finding that\nconduct is without color or for an improper purpose, must be supported by a high degree of\nspecificity in the factual findings.\u201d Wolters Kluwer Fin. Servs., 564 F.3d at 114. Apart from\nKesner\u2019s failure to take discovery, Buhl does not point to any evidence of bad faith by Kesner or\nBiss. There was no effort to multiply or delay proceedings. On the contrary, the streamlined\ndiscovery record facilitated efficient briefing on the motion for summary judgment. See Prescott\nv. Nationwide Mut. Ins. Co., No. 17 Civ. 6508, 2019 WL 7842538, at *17 (E.D.N.Y. Aug. 27,\n2019), report and recommendation adopted, No. 17 Civ. 6508, 2020 WL 64185 (E.D.N.Y. Jan.\n\n7, 2020).\n\nCONCLUSION\nFor these reasons, the Court denies Buhl\u2019s motion for sanctions. The Clerk of the Court\n\nis respectfully directed to terminate the motion pending at docket 159. This case remains closed.\n\nSO ORDERED.\n\nPaul A. Engelmayer\nUnited States District Judge\n\nDated: May 2, 2022\nNew York, New York\n","ocr_status":1,"date_upload":"2022-05-02T14:36:31.864164-07:00","document_number":"165","attachment_number":null,"pacer_doc_id":"127031158054","is_available":true,"is_free_on_pacer":true,"is_sealed":null,"document_type":1,"description":"Memorandum & Opinion","acms_document_guid":""}],"date_created":"2022-05-02T14:09:11.155519-07:00","date_modified":"2023-11-07T18:38:14.356858-08:00","date_filed":"2022-05-02","time_filed":null,"entry_number":165,"recap_sequence_number":"2022-05-02.001","pacer_sequence_number":556,"description":"OPINION AND ORDER re: 159 MOTION for Attorney Fees and Costs. filed by Teri Buhl. For these reasons, the Court denies Buhl's motion for sanctions. The Clerk of the Court is respectfully directed to terminate the motion pending at docket 159. This case remains closed. SO ORDERED. (Signed by Judge Paul A. 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