July 20, 2017 — Hughes Hubbard won a significant pro bono victory in a decade-old shareholder derivative suit, overcoming defendants' motion for summary judgment and securing access to key documents necessary for trial.
In 2007, Ken Lamonte Franklin, a low-income resident and shareholder of one of New York City's Housing Development Fund Corporations, brought a derivative suit against the co-op board to prevent defendants' continued breach of their fiduciary duties, and the waste and mismanagement of co-op funds.
HHR came on to the case in 2016, following prior counsel's withdrawal, and expeditiously filed a motion to compel the production of key documents needed to complete discovery. Rather than complying with discovery obligations, defendants filed a cross-motion for summary judgment, attempting to bring an end to the case.
On March 30, 2017, after both sides filed reply briefs, Sam McCoubrey argued for denial of defendants' summary judgment motion and in favor of HHR's motion to compel before New York Supreme Court Judge Erika M. Edwards. In her June 12 order, Judge Edwards denied defendants' motion for summary judgment and partially granted HHR's motion to compel, providing access to key records.
The HHR team -- consisting of Sam McCoubrey, Trudy Dako, David Shimonov and Andrew Bouriat, with Seth Rothman supervising -- will move the case to trial at the close of discovery.