Epstein Becker Stuck With Self-Contradicting Statement Sanctions

Epstein Becker & Green PC and one of its attorneys must face almost $90,000 in sanctions for taking self-contradicting positions in various forums, after the Third Circuit ruled Friday that it lacked jurisdiction to consider their appeal.

Epstein Becker and attorney Richard Frey represented an individual named Sunil Patel, who allegedly ran a “rent-a-vet” scheme to fraudulently obtain government benefits by using a disabled veteran as a “front man.” Frey successfully argued for arbitration in federal court, and once the dispute was moved to arbitration he claimed it belonged in court.

The U.S. District Court for the District of Delaware issued an order saying the conduct was sanctionable, and that they were liable for reasonable attorneys’ fees and costs. They appealed before the court issued a second order finding that the amount of sanctions was $89,776.52.

The U.S. Court of Appeals for the Third Circuit held that the lower court’s initial order wasn’t final and appealable, meaning the appeals court lacks jurisdiction to review it. The court called Frey and his firm’s joint notice of appeal “premature for purposes of disputing sanctions liability” and said that it must be dismissed.

Frey and the law firm are represented by firm attorneys.

Judge Peter J. Phipps wrote the opinion in which Judges Paul B. Matey and Stephanos Bibas joined.

The case is IMEG Corp. v. Patel, 3d Cir., No. 21-01310, unpublished 4/8/22.