The Terrace Diner in Bayside, Queens earned high marks from the Queens Gazette last year for its "open, airy atmosphere" and "wide, comfortable booths and tables." It's safe to say, though, that Dr. Arnold Sheff won't be going back there any time soon. The retired physician says he was regular at the restaurant until one morning last October, when he complained about the service to another customer, which prompted the waiter serving him to retaliate by publicly announcing to everyone in the diner what you see highlighted above. Naturally, Sheff has since suffered severe embarrassment, mental anguish, and extreme emotional distress as a result, and is now suing everyone involved. Provided you're not eating and browsing the Web at the same time, you can read the full complaint after the jump.

You can tell Seven jeans apart from the denim sold at discount department stores by the price tag, of course. But that doesn't mean Seven is going to stand idly by when someone comes along and tries to sell knock-off jeans for less than half the price at Marshalls. Seven for All Mankind filed a lawsuit last week charging InDesign Apparel and Oleg Cassini with doing just that, producing a line of denim "bearing an embroidered design on the back-pockets that is strikingly and confusingly similar" to Seven's own "distinctive brand," goods on sale at Marshalls locations across the country. Seven says it informed the parties involved to knock it off (as it were), but they've failed to comply with the cease and desist letters that have been sent their way. So Seven is now suing for trademark and copyright infringement (among other things), and asking a court to put a halt to it. Oh, and they're also asking the court to grant them "up to $150,000 per work infringed," which should be about a trillion dollars or so. The full lawsuit is below. Flip to the end of the document to see the two labels side by side and play the role of judge and jury.

Last month it was widely reported that free-spending, once-cool designer Marc Ecko's empire was on the verge of bankruptcy. Today, we scored an internal memo from Ecko (kind of) reassuring his employees. And another rumor!

It was just over a month ago that Cityfile first reported that Vanity Fair columnist Michael Wolff was having an extra-marital affair with a young woman named Victoria Floethe. Wolff wasn't in a very good mood that day, and insisted there was absolutely no truth to the tale, adding that we'd be hearing from his lawyer for spreading such filth. We never did hear from that lawyer, and Wolff subsequently confirmed our scoop to Page Six.

If you come up short in a review by Times dining critic Frank Bruni, consider the bright side: You just may save yourself from a messy, three-year legal battle. In 2006, Tina Michelle Braunstein, a former bartender at David Barber's three-star Blue Hill at Stone Barns, filed suit against the restaurant, claiming she'd been the victim of sexual harassment and discrimination. The workplace unpleasantness increased considerably, she says, after her name was mentioned three times in Bruni's review of the restaurant, since the praise was none too appreciated by Philippe Gouze, Blue Hill's general manager. Braunstein's suit was filed three years ago, but Blue Hill tried to have the case dismissed, a motion that was denied by a judge late last week. Here's hoping the matter goes to court: There's always the off-chance Frank Bruni is forced reveal himself and take the witness stand. The judge's order is below.

Yesterday was Perez Hilton's 31st birthday! His star-studded birthday bash will be March 28th at LA's "iconic" Viper Room. And here's how his marketing firm is trying to sell people sponsorships of this once-in-Perez's-lifetime affair:

The 16-year-old who's confessed to killing radio newsman George Weber — identified as John Katehis by the New York Post — used MySpace to profess his love for sex, violence, knives and Satanism.

Just days before Bernie Madoff was arrested, a Bronx businessman named Martin Rosenman handed over $10 million of his family's money to the now-imprisoned financier's investment firm. Terrible timing, no doubt, but Rosenman quickly argued that he hadn't actually intended to have Madoff invest the cash until the following month, so he was entitled to get his money back pronto, and shouldn't be treated like the thousands of shlubs who'd fallen victim to Madoff months or years earlier. A federal judge ruled against Rosenman in February and instructed him to take his place in line with everyone else, thank you very much. But it seems Rosenman isn't taking no for an answer. Today he filed notice that he intends to appeal the ruling. Best of luck with that, Marty—you'll need it. The court papers are below.

Bobby Jindal isn't officially running for president in 2012. But he sure isn't wasting any time filling up his campaign coffers. We're pleased to share with you this invite that went out to top NYC Republican donors this week, promising "cocktails and conversation" with the Republican governor of Louisiana at Georgette Mosbacher's Fifth Avenue apartment on April 15. For just $1,000 a person. (Or $2,000 if you're spending corporate money.) A larger scan of the invite is here.

Two AIG executives fingered by the New York Post as recipients of blood-money bonuses donated to the presidential campaign of Sen. Chris Dodd, who is fighting off claims of coziness with the toxic insurer.

AIG has sparked quite the scandal in recent days for paying out $165 million in bonuses even after accepting more than $150 billion in assistance from the U.S. government. Execs at the insurance giant maintain the company is legally bound to follow through with the payments since the bonuses were incorporated into contracts it signed last year. But that's not the only legal agreement that has AIG wasting its cash: The company continues to pay for the privilege of stamping its logo on the jerseys worn by Manchester United players, too.

It's probably safe to assume that Amy Odell, the editor of New York magazine's fashion blog, The Cut, won't be on the guest list for Lauren Santo Domingo's Christmas party this year. Late yesterday, Odell posted a scathing critique of the socialite, Vogue contributing editor, and wife of Colombian heir Andres Santo Domingo. Why? It seems Santo Domingo couldn't get her hands on a pair of black $1,800 Hussein Chalayan boots that have been all the rage recently. So she did what any other dedicated fashionista would do: She took a pair of similar boots in brown and customized them to look just like the Chalayan ones. Vogue posted Santo Domingo's tale of "fashion dedication" online; Odell responded by suggesting Santo Domingo wasn't "important enough" to get her hands on the genuine article, and said her effort to recreate them was something that "no one with a real job would ever have the time, money, or energy to even think about doing." Totally true! The problem is that not long after, New York removed any trace of the story from its website. Did Vogue put pressure on New York to remove the offending piece? Did Anna bitch Adam out? Hard to say! An email to Odell asking for an explanation went unanswered. But we saved a cached version for you, which you can read here.

It was reported several weeks ago that Peter Madoff—brother of the newly imprisoned Bernie and his long-time business partner—had transferred ownership of his $4.6 million Palm Beach home to his wife right around the same time the Madoffs learned that their firm was under investigation. We have the documents below to prove it, if you're interested in seeing what may very well be entered into evidence at some point in the future.

Treasury Secretary Tim Geithner is enduring the most challenging stretch of his career for many reasons: His credibility took a hit before he even took the job thanks to his little tax issue, he's managing the nation's finances during quite possibly the bleakest moment in American economic history, and in recent weeks he's been isolated in a sad, lonely office where he's had to make do with a skeletal staff. One more reason why Geithner may have the worst job in the world (with the possible exception of Citigroup CEO Vikram Pandit): When a disgruntled former employee of the IRS decides to sue the agency because it didn't give him a "riser for his computer monitor" or the larger cubicle he requested, and he suffers severe neck and back pain and emotional distress as a result, it's Geithner's name that appears all over the lawsuit. Poor Timmy. The full suit is below.

She may be nearly six feet tall and have a very square, masculine jaw, but we're pretty sure that Kelly Killoren Bensimon is a woman. But that's not what cops at the Fifth Precinct marked down when the "Real Housewife" turned herself in after allegedly pummeling her 30-year-old boyfriend, Nick Stefanov. She was listed as a male. (She's also 145 pounds, apparently.) While you wait for Bensimon's lawyer to jump all over this case of shoddy police work and have the charges against her dismissed on a technicality, you can review the complete criminal docket for yourself after the jump.

Six weeks ago, we revealed that Starbucks had put its brand-new, $45 million Gulfstream 550 up for sale the day before announcing plans to cut 6,700 jobs and close an additional 300 stores. It looks like they're not done trimming the corporate fat. The coffee chain put another plane on the market this week—a 2004 Challenger 604 that seats ten.

Facebook is fun to use. But it's not a fun place to work — as confirmed by the defection of Net Jacobsson, a key executive in Facebook's effort to cash in on your life online.

Comedian D.L. Hughley was pummeled by critics when his weekend talk show debuted on CNN last fall. "What the hell was CNN thinking?" a columnist for AdAge asked after watching the first episode. It remains unclear what was running through the minds of CNN execs when they signed him up for the spectacularly unfunny program featuring painfully awkward interviews. But the network may have come to its senses or at least decided to cut its losses. A source tells us that CNN has decided to cancel the show due to "budgetary constraints." We haven't heard back yet from reps at CNN, although the move wouldn't be surprising given CNN's troubles as of late and the fact that HLN (the network you used to know as Headline News) is now "beating its older sibling CNN in the target 25-54 demo," according to Broadcasting & Cable. We'll let you know as soon as we hear more. Update: It's confirmed: Hughley is out. An official statement from CNN and more detail on his departure below.

It looks like 20 Pine Street and Rector Square aren't the only downtown apartment buildings facing lawsuits from frustrated, angry buyers. Steve An paid $820,000 for an apartment in mogul Lev Leviev's District condo building at 111 Fulton Street back in 2007. Maybe he isn't so impressed with how Amy Sacco's "exclusive lifestyle concept" has been turning out? An filed suit against Leviev's company on Tuesday, and is now demanding his $82,000 deposit back. You can look at the complaint for yourself below.

After weeks of anticipation and confusion, the listing for Sting's duplex apartment at the Brentmore at 88 Central Park West has finally turned up online. The 6,600-square-foot spread, which is listed with Halstead's Mark Friedman, features five bedrooms, grand staircase, and no less than 23 closets. And it can be yours for just $19 million! Take a tour for yourself after the jump.