Commercial Division Blog
Posted: October 30, 2013 / Categories Commercial, Res Judicata/Collateral Estoppel/Entire Controversy Doctrine, Motion to Dismiss; Motion for Judgment on the Pleadings
Res Judicata Bars Claims Arising During Prior Lawsuit
On October 29, 2013, the First Department issued a decision in Jumax Assoc. v. 350 Cabrini Owners Corp., 2013 NY Slip Op. 06992, illustrating the scope of the doctrine of res judicata. Jumax had
previously commenced an action in 2002 seeking to recover fees that had been paid to defendant co-op pursuant to a license agreement defendant had entered into in or about 1995 with a third-party cellular telephone company, as well as fees that would be paid through the time of judgment. At the time the action was commenced, the license agreement had been amended and extended three times. During the pendency of the prior action, the license agreement was amended and extended two more times.
Jumax lost the 2002 action. Jumax then initiated a new lawsuit "to recover amounts paid pursuant to the amendments entered into during the pendency of the prior action." The First Department held that such claims were "barred by the doctrine of res judicata." As the First Department noted, res judicata "applies not only to claims actually litigated but also to claims that could have been raised in the prior litigation." (Citations and internal quotations omitted) (emphasis added).
Jumax shows that if you have claims and do not bring them in a pending action, you risk losing them forever.