Plaintiff may sue on facts revealed in failed mediation

“A more frivolous counterclaim cannot be imagined.  Counsel for [the defendant] are ordered to show cause why they — attorneys licensed to practice in this court — should not be sanctioned for wasting this Court’s time and the [plaintiff’s] resources by asserting such a claim.”

Thus concluded the federal District Court in Manhattan when the American Society for the Prevention of Cruelty to Animals sued its former CFO for breach of fiduciary duty and the CFO counterclaimed for breach of the confidentiality provisions in the parties’ mediation agreements.