ESCA Legal Wins Dismissal and Anti-SLAPP Fee Award in Family Hospitality Dispute
New York, October 8, 2026. ESCA Legal, led by Partner Kalpana Nagampalli, has secured the dismissal of a lawsuit brought against its client, a co-owner of a family-owned hospitality business, after the New York Supreme Court dismissed every claim at the pleading stage and held that the client is entitled to recover attorney fees under New York’s anti-SLAPP law.
The plaintiff, the client’s co-owner, filed the suit while an earlier action between the same parties was already pending before another justice of the same court. The new complaint sought to relitigate a contract dispute already in that first case, and added claims for defamation, disparagement, harassment, and tortious interference. ESCA Legal moved to dismiss on multiple grounds, including the duplicative nature of the suit and the protections New York law affords to speech on matters of public concern.
At its core, this is a dispute between family members who built a business together and now disagree about how it is run. Disputes like this one often move into a second courtroom, where the goal is less to win a claim than to raise the cost of defending one.
What the Court Decided
In granting the motion in substantial part, the court:
Dismissed the breach of contract claim as duplicative of the earlier-filed action between the same parties
Dismissed the defamation, disparagement, harassment, and tortious interference claims for failure to state a claim
Held that the client is entitled to recover attorney fees under New York’s anti-SLAPP statute, Civil Rights Law §§ 70-a and 76-a
Dismissed the action with costs
The amount of the fee award will be set on a separate application, which is now pending.
Why It Matters for Business Owners
New York strengthened its anti-SLAPP law in 2020. Where a claim targets protected speech and lacks a substantial basis in fact and law, the statute allows the defendant to recover the fees spent defending it. For owners of closely held businesses facing a co-owner who has opened a second front, the decision shows two tools working together: a motion that keeps the dispute in the court where it started, and a fee-shifting statute that puts the cost of meritless claims on the party who filed them.
“Co-owner disputes are expensive enough when they are litigated once,” said Kalpana Nagampalli, Partner in ESCA Legal’s IP and Commercial Litigation practice, who represents the client. “When the same fight is refiled in a second courtroom, the law gives the defendant real tools, and we used them early. The court dismissed every claim at the pleading stage and held that our client is entitled to recover the legal fees this case forced them to spend.”
What Comes Next
ESCA Legal will pursue the full fee award on the pending application and will continue to represent the client in the earlier-filed action, where the client’s own claims remain pending.
Facing a Co-Owner or Business Dispute?
Business owners and their advisors can reach Kalpana Nagampalli directly to discuss partnership and shareholder disputes, duplicative or retaliatory litigation, and anti-SLAPP defense.
Kalpana Nagampalli, Partner
IP and Commercial Litigation
About ESCA Legal
ESCA Legal is a boutique intellectual property law firm based in New York, focused on trademark litigation, brand protection, and counterfeit enforcement for modern brands in fashion, beauty, entertainment, luxury, and emerging technology. The firm’s ESCA Method™ combines rapid enforcement, including Schedule A litigation, with long-term brand strategy. The firm also represents closely held businesses in commercial and ownership disputes. Learn more at esca.legal.
Media Contact
Adam Witzburg, Chief Operating Officer
Attorney advertising. Prior results do not guarantee a similar outcome. ESCA Legal, LLC, 55 Broadway, 3rd Floor, New York, NY 10005. (347) 519-4323. Responsible attorney: Kalpana Nagampalli.
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