Koch v. Greenberg
14 F. Supp. 3d 247
S.D.N.Y.2014Background
- Diversity action by Koch against Greenberg over counterfeit wine from a Zachys auction (Oct. 2005); Koch alleged fraud and NY GBL §§ 349, 350 claims.
- Trial in March–April 2013 was bifurcated into liability/damages and punitive damages phases; jury found for Koch on all claims and awarded $355,811 compensatory and $24,000 statutory damages under GBL § 349, plus $12 million punitive damages.
- Post-trial motions: Greenberg sought judgment as a matter of law or new trial; Koch sought attorney’s fees, injunctive relief, and interest.
- The court reduced compensatory damages to $212,699 under NY GOL § 15-108 due to Zachys settlement, and remitted punitive damages to $711,622; other requests denied.
- The court denied Koch’s request for attorney’s fees and injunctive relief, but granted prejudgment and post-judgment interest on the awards.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| whether the jury’s fraud/GBL verdicts should be set aside for legal insufficiency | Koch supports the jury’s liability findings on both fraud theories and GBL claims | Greenberg argues there was a complete absence of evidence supporting the verdict | Rule 50 motion denied; verdicts upheld on liability and GBL claims |
| whether NY GOL § 15-108 offsets apply to reduce Greenberg’s liability | Offsets should apply to reduce the Zachys settlement against the same injury | Offset must be proportional and tied to the same injury; and the 36-bottle scope complicates matching | Offset applied partially; compensatory damages reduced from $355,811 to $212,699 by 15-108(a) |
| whether punitive damages were proper and if remittitur is required | Punitive damages warranted given fraud’s reprehensibility and public-fraud context | Punitive award excessive and should be capped | Punitive damages remitted to $711,622 (2x reduced compensatory) as required by Gore/NY standards |
| whether post- and pre-judgment interest and attorney’s fees should be awarded | Interest and fees should follow from the judgments; fees may be awarded under GBL | Fees not warranted; interest questions contingent on settlement dynamics | Pre- and post-judgment interest awarded; attorney’s fees denied; injunctive relief denied |
Key Cases Cited
- Danann Realty Corp. v. Harris, 5 N.Y.2d 317 (N.Y. Ct. App. 1959) (peculiar knowledge exception to reliance in fraud claims)
- Gaidon v. Guardian Life Ins. Co. of Am., 94 N.Y.2d 330 (N.Y. Ct. App. 1999) (GBL §§ 349/350 standard; consumer-oriented conduct concept)
- Oswego Laborers’ Local 214 Pension Fund v. Marine Midland Bank, 85 N.Y.2d 20 (N.Y. Ct. App. 1995) (consumer-oriented conduct; broad impact requirement under GBL §§ 349/350)
- Koch v. Acker, Merrall & Condit Co., 18 N.Y.3d 940 (N.Y. Ct. App. 2012) (as-is clauses do not bar deceptive-trade-practices claims at pleadings stage)
- West v. Hogan, 88 A.D.3d 1247 (N.Y. App. Div. 4th Dept. 2011) (considerations for appellate review of punitive damages; NY law alignment with Gore)