On Monday, January 29, 2024, the Supreme Court of New Jersey issued an order suspending attorney Amit Deshmukh from the practice of law for three months.
The case is entitled “In the Matter of Amit Deshmukh,” with case no. 088499.
The suspension stems from Deshmukh’s representation of client Francis Pellegrino in a lawsuit filed in September 2019 against former business partners David Nogaki and David Shulim. Deshmukh filed the lawsuit in the Superior Court of New Jersey, Hunterdon County, alleging civil malfeasance during the parties’ joint business venture.
Unbeknownst to Deshmukh at the time, Shulim had filed for Chapter 7 bankruptcy on March 28, 2017, and received a discharge in June 2017. When Shulim raised the bankruptcy discharge as a defense in October 2019, Deshmukh should have dismissed the claims against Shulim. However, he continued pursuing the matter, in violation of the bankruptcy discharge injunction.
On July 14, 2020, the Bankruptcy Court denied Deshmukh’s motion to reopen Shulim’s bankruptcy case. Nevertheless, Deshmukh pressed on with the state court lawsuit, filing discovery motions against Shulim. In October 2020, the Bankruptcy Court sanctioned Deshmukh and Pellegrino for violating the discharge injunction and ordered them to pay Shulim’s attorney’s fees.
Still, Deshmukh did not dismiss Shulim from the lawsuit. He continued filing discovery motions even after being sanctioned. In November 2020 and December 2020, the Bankruptcy Court twice found Deshmukh and Pellegrino in contempt for ongoing violations of the discharge order. They were again ordered to pay attorney’s fees.
The Disciplinary Review Board found that by failing to dismiss Shulim from the state court lawsuit and continuing to pursue discovery against Shulim, Deshmukh violated the Rule of Professional Conduct which prohibits engaging in frivolous litigation. Although Deshmukh claimed he was seeking discovery for the claims against the other defendant, the Board noted he could have obtained discovery without keeping Shulim as a defendant after the Bankruptcy Court rulings.
In ordering the three-month suspension, the Supreme Court affirmed the Disciplinary Review Board’s finding that Deshmukh violated RPC. He will be suspended from practicing law effective February 28, 2024. The Order also requires Deshmukh to reimburse costs associated with the disciplinary proceedings.
According to avvo.com, Mr. Deshmukh is an attorney in Clifton, New Jersey. He acquired his law license in New Jersey in 2014.
A copy of the original filing can be found here.
