KATHERINE LAI VS. SAM SHIMONIÂ (L-3123-15, MIDDLESEX COUNTY AND STATEWIDE), A-2062-15T3

Lai (pro se) was property manager; lease existed between landlord (Fantastic) and tenant Air-O-Matic Inc. (AOMI) for parking spaces; AOMI paid rent timely and later paid rent to new owner Golden Eagle.
Lai sued Shimoni (AOMI agent) and AOMI alleging fraud, negligence, LAD, ADA, §1981 and §1983 claims, and sought default after service was made on defendants' former attorney (not shown to have authority to accept service).
Defendants served a Rule 1:4-8 / N.J.S.A. 2A:15-59.1 safe-harbor notice demanding withdrawal; then moved to dismiss under R. 4:6-2(e).
Trial court denied Lai’s default motion, granted defendants’ motion to dismiss for lack of standing and failure to state claims, and denied Lai’s reconsideration motion.
Court found Lai’s continued prosecution frivolous, granted defendants’ cross-motion for sanctions under R. 1:4-8, and entered judgment for attorney’s fees of $11,620.80 after an R.P.C. 1.5(a)/R. 4:42-9 compliant affidavit of services.

Issue	Plaintiff's Argument	Defendant's Argument	Held
Whether the court abused its discretion denying reconsideration	Lai argued the court should reconsider its October 30 dismissal/order (no persuasive legal basis presented)	Reconsideration unwarranted; prior ruling correct and procedurally proper	Denial affirmed — no palpable error or overlooked controlling authority; no abuse of discretion
Whether sanctions under R. 1:4-8 / N.J.S.A. 2A:15-59.1 were proper	Lai did not contest receipt of safe-harbor notice; argued only that no retainer agreement or cancelled checks were produced	Litigation was frivolous or became frivolous; safe-harbor complied with; counsel submitted proper fee affidavit	Sanctions affirmed — safe-harbor met rule, claims frivolous (lack of standing; meritless claims), and fee submission complied with R. 4:42-9/R.P.C. 1.5(a)
Whether Lai had standing to sue and whether claims stated a viable cause of action	Lai proceeded in her own name alleging various statutory and common-law claims	Lai lacked standing because she did not own the property and could not represent the corporation; pleaded insufficient facts; negligent discrimination not a recognized cause	Dismissal for lack of standing and failure to state claims appropriate; underlying litigation properly found frivolous

Pitney Bowes Bank, Inc. v. ABC Caging Fulfillment, 440 N.J. Super. 378 (App. Div.) (reconsideration standard; abuse of discretion)
Capital Fin. Co. of Delaware Valley, Inc. v. Asterbadi, 398 N.J. Super. 299 (App. Div.) (limits on reconsideration relief)
Hous. Auth. of Morristown v. Little, 135 N.J. 274 (Supreme Court of New Jersey) (abuse of discretion standard)
Flagg v. Essex Cnty. Prosecutor, 171 N.J. 561 (Supreme Court of New Jersey) (definition of abuse of discretion)
McDaniel v. Man Wai Lee, 419 N.J. Super. 482 (App. Div.) (standard of review for R. 1:4-8 fee awards)
Masone v. Levine, 382 N.J. Super. 181 (App. Div.) (standards for reversing fee awards)
DeBrango v. Summit Bancorp, 328 N.J. Super. 219 (App. Div.) (sanctions recoverable from time litigation became frivolous)
United Hearts, L.L.C. v. Zahabian, 407 N.J. Super. 379 (App. Div.) (bad faith may arise during litigation)
First Atl. Fed. Credit Union v. Perez, 391 N.J. Super. 419 (App. Div.) (objective good-faith test for R. 1:4-8)
K.D. v. Bozarth, 313 N.J. Super. 561 (App. Div.) (sanctions where no objectively reasonable basis)