Minutes | Filed: July 02, 2026
| Entered: July 02, 2026
Metaxas et al v. Graubard et al
Contract: Other | New York Eastern
Show Cause Hearing Order on Motion for Sanctions Order on Motion for Hearing
Minute Order for proceedings held before Magistrate Judge Peggy Cross-Goldenberg:granting in part and denying in part 133 Motion for Sanctions; Show Cause Hearing held on 7/2/2026.Appearances for plaintiffs: Lauren Zimmerman, Babak Ghafarzade. Appearance for defendant Sam Sprei:Matin Emouna. Appearance for defendant M. David Graubard: Randall Tesser. Appearance for defendant Jonathan Rubin: Mordy Gross. Defendant Frank Seddio appeared at the conference pro se and defendants Sam Sprei, Jonathan Rubin, and M. David Graubard were also in attendance. Discussion held regarding defendant Sprei's discovery conduct.
For the reasons stated on the record, and pursuant to the Courts authority under Rule 26 and Rule 37, the Court finds Mr. Sprei in contempt of Court Orders related to the discovery process and finds that interim sanctions and measures are warranted prior to the imposition of default.
The Court ordered that plaintiffs' deposition of defendant Sprei continue onJuly 16, 2026 at 10 AM in Courtroom 322N.If plaintiffs' questioning concludes before the allotted seven hours elapses, defendant Rubin may begin his questioning. If Mr. Rubin needs additional time to complete his questioning, he may submit a letter to the Court requesting such time. Defendant Sprei's failure to attend the depositionor participate in good faith will result in an automatic sanction of $5,000 and will continue to accrue daily until he comes into compliance with the Court's order to attend and participate in plaintiffs' deposition.
The Court also ordered defendant Sprei to produce documents and any corresponding privilege log by July 10, 2026. Defendant Sprei was ordered to be in substantial compliance with the entirety of his discovery obligations, including his obligations to produce documents and respond to interrogatories, prior to the conference currently scheduled for July 29, 2026. Failure to comply with either deadline will result in an automatic sanction of $1,000 and will continue to accrue daily until he comes into compliance with the Court's Order to comply with written discovery. This automatic daily sanction will increase to $5,000 beginning on the sixth day of noncompliance and will continue to accrue daily until he comes into compliance with this Order.The Court clarified that these sanctions apply to all of defendant Sprei's discovery obligations to any party in this litigation.
The Court recognized plaintiff's argument that reasonable attorneys' fees and costs are required by Federal Rule of Civil Procedure 37. However, because these fees and costs will continue to accrue should sanctions apply for failure to comply with this Order, and in order to avoid piecemeal consideration of plaintiffs' fees and costs, the Court defers taking an accounting for those costs and fees untileither defendant Sprei complies with this Order or the resulting sanctions apply. (Time Log #9:46AM-11:08AM.) (JHD)