A state judge has declined to vacate a $14,000 sanction against a Long Island lawyer who argued that the judgment would prevent him from obtaining a favorable mortgage modification on his home. Instead, Acting Supreme Court Justice Daniel Palmieri of Nassau County (See Profile) sanctioned the lawyer, Thomas F. Liotti, another $1,000 for making the “frivolous” motion. Mr. Liotti, of Garden City, was sued for defamation by another firm, Galasso, Langione, Catterson & LoFrumento, over his representation of Anthony Galasso, who was convicted of stealing more than $2 million from the law firm where his brother, Peter Galasso, is a name partner (NYLJ, Feb. 9). The firm claimed Mr. Liotti had implied that the firm was involved in the theft, a charge Mr. Liotti has denied.

Justice Palmieri dismissed Mr. Liotti’s claim that his bank would not permit the mortgage to be subordinated to the sanctions judgment without additional security, as insufficient hardship. “That Liotti is able to obtain a loan is a testament to the fact that his financial resources are adequate,” Justice Palmieri ruled. Mr. Liotti vowed to appeal the decision and the latest sanction, calling it “all wrong.” Galasso Langione & Botter v. Liotti, 19276/07, will be published Monday. - Vesselin Mitev

Veteran Loses Legal Battle Over Special Election Ballot

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