New York Attorney General Letitia James asked a Trump-appointed judge in Texas for an extension in a case related to a lawsuit about her office's handling of a business fraud case.
James is facing the lawsuit by Ariel Schachter, who served as the CFO of Northern Leasing Systems, which was barred from practicing leasing in New York after a court found the company liable for fraud in 2020 over allegations that it convinced small businesses to sign lease agreements without fully understanding the conditions, as well as misrepresented facts about the agreements
Schachter is seeking to open a new leasing business in Texas and has asked for a court to render that judgment unenforceable in the state over James' handling of the case.
In a new filing on Monday, an attorney representing James' office asked Judge Matthew Kacsmaryk, who is overseeing the case, for a 45-day extension to file a response to Schachter's initial complaint because she believes both parties can reach a deal without the need for litigation.
"Defendant believes that a resolution of this matter may be reached without need for additional litigation," the filing reads.
"Counsel for the parties are discussing a potential resolution. Defendant requests a 45-day extension of time to file a responsive pleading or motion, or otherwise respond to Plaintiffs' Complaint, so that the parties may continue these discussions and potentially reach a resolution of this dispute, resulting in dismissal of the litigation."
According to the filing, James would file one or more motions if resolution is not reached. She also requested additional time to file a "responsive pleading or motion, so that Defendant can fully analyze and brief these issues."
Newsweek reached out to James' office via email for comment.
Kacsmaryk, a judge in the United States District Court for the Northern District of Texas, was appointed by former President Donald Trump and has built a reputation for handing down staunchly conservative rulings.
He rose to national prominence in April 2023 by ordering the U.S. Food and Drug Administration (FDA) to void its decades-long approval of mifepristone, a pill used to terminate pregnancies. The ruling set off a wave of criticism, as reproductive right advocates raised concerns about his history of anti-abortion activism.
The U.S. Supreme Court in March heard arguments challenging Kacsmaryk's ruling, with justices generally appearing to be skeptical about efforts to ban the drug. James attended a rally at the court urging the justices to overturn his ruling.
The lawsuit against Northern Leasing Company did not originate with James. It was first raised by former New York Attorney General Eric Schneiderman in 2016, but his successors, former AG Barbara Underwood and then James, continued pursuing the case.
Schachter is arguing that the cases should not be enforceable in Texas because they were brought by the AG's office via special proceedings. The AG's office brought the cases pursuant to a New York law intended to provide an "expeditious means" to resolve some disputes.
He asked Kacsmaryk to rule that the judgments are "not entitled to full faith and credit or enforcement outside the state of New York because Schachter was denied any opportunity whatsoever to present evidence and testimony to rebut the Defendant's allegations in the summary proceeding."
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Andrew Stanton is a Newsweek weekend reporter based in Maine. His role is reporting on U.S. politics and social issues. ... Read more
