(a) If in an action to recover damages for personal injury, injury to
property or wrongful death, or an action brought by the individual who
committed a crime against the victim of the crime, and such action or
claim is commenced or continued by a plaintiff or a counterclaim,
defense or cross claim is commenced or continued by a defendant and is
found, at any time during the proceedings or upon judgment, to be
frivolous by the court, the court shall award to the successful party
costs and reasonable attorney's fees not exceeding ten thousand dollars.
(b) The costs and fees awarded under subdivision (a) of this section
shall be assessed either against the party bringing the action, claim,
cross claim, defense or counterclaim or against the attorney for such
party, or against both, as may be determined by the court, based upon
the circumstances of the case. Such costs and fees shall be in addition
to any other judgment awarded to the successful party.
(c) In order to find the action, claim, counterclaim, defense or cross
claim to be frivolous under subdivision (a) of this section, the court
must find one or more of the following:
(i) the action, claim, counterclaim, defense or cross claim was
commenced, used or continued in bad faith, solely to delay or prolong
the resolution of the litigation or to harass or maliciously injure
another;
(ii) the action, claim, counterclaim, defense or cross claim was
commenced or continued in bad faith without any reasonable basis in law
or fact and could not be supported by a good faith argument for an
extension, modification or reversal of existing law. If the action,
claim, counterclaim, defense or cross claim was promptly discontinued
when the party or the attorney learned or should have learned that the
action, claim, counterclaim, defense or cross claim lacked such a
reasonable basis, the court may find that the party or the attorney did
not act in bad faith.