Sussman v. Bank of Israel

Sussman and other founders and shareholders (plaintiffs) of an Israeli bank, sued in Israel for negligence and breach of duty, hired New York attorney Nathan Lewin, who threatened Israeli officials and the Bank of Israel (defendants) with a New York lawsuit and negative publicity if they did not settle. When they refused, Lewin sued in the Southern District of New York; the defendants moved to dismiss on forum non conveniens grounds, which the court granted without prejudice on the condition that Sussman would not be detained if he returned to Israel and that defendants waive Israeli statute-of-limitations defenses. The court then sanctioned Lewin $50,000 under Rule 11 and its inherent power, based solely on finding the plaintiffs' purpose in filing was "manifestly improper," and Lewin appealed while defendants cross-appealed to increase the sanction.