22 NYCRR 37.1

(a) The Chief Administrator of the Courts, with the advice and consent of the Administrative Board of the Courts, shall adopt rules providing for costs and sanctions as follows:

(1) in civil actions and proceedings in any trial or appellate court in the Unified Court System: providing for the award of costs, including reasonable attorney's fees, or the imposition of financial sanctions, or both, for frivolous conduct in litigation by any party or attorney; and

(2) in actions and proceedings in any trial or appellate court in the Unified Court System: providing for the award of costs, including reasonable attorney's fees, or the imposition of financial sanctions, or both, upon an attorney, who, without good cause, fails to appear at a time and date scheduled for an action or proceeding to be heard before a designated court.

(b) The rules shall include:

(1) a definition of frivolous conduct (civil cases);

(2) the factors to be considered in determining whether costs or sanctions should be awarded or imposed;

(3) a provision that the awarding of costs or imposition of financial sanctions by a court may be upon motion or upon the court's own initiative;

(4) a maximum monetary limit on sanctions;

(5) the opportunity to be heard before costs or sanctions are awarded or imposed; and

(6) a requirement that reasons for the award of costs or imposition of sanctions be set forth in writing or on the record.

(c) The rules may provide that, as appropriate, financial sanctions may be made payable to the Lawyers' Fund for Client Protection established pursuant to section 97-t of the State Finance Law or payable to the court.