Court Rules A Federal Court’s Summary Judgment Order Could Not Support Res Judicata Until The Entry Of A Final Non-Appealable Judgment

Posted: May 16, 2025 / Written by: Jeffrey M. Eilender, Thomas A. Kissane, Samuel L. Butt, Joshua Wurtzel, Channing J. Turner / Categories Motion to Dismiss, Judgment and Collection, Res Judicata/Collateral Estoppel/Entire Controversy Doctrine

Court Rules A Federal Court’s Summary Judgment Order Could Not Support Res Judicata Until The Entry Of A Final Non-Appealable Judgment

On April 4, 2025, Justice Joel M. Cohen ruled that a defendant seeking to dismiss claims against him on grounds of res judicata could not rely on a federal court’s summary judgment order because the order was not a “final conclusion” to the claim. In Raistone Purchasing LLC-Series XXXVII v. Gustavo Andres Patino Ocampo, et al., Index No. 654931/2024, defendant Gustavo Patino Ocampo argued that a federal court’s order on summary judgment in a federal action precluded the claim against him in state court. The Court denied his motion to dismiss, explaining:

Res judicata bars an action if “(1) the previous action involved an adjudication on the merits; (2) the previous action involved the plaintiffs or those in privity with them; (3) the claims asserted . . . were, or could have been, raised in the prior action” . . . However, adjudication occurs when “a claim between the parties has been previously ‘brought to a final conclusion’” . . . . Since the Federal court has not rendered a final non-appealable judgment, res judicata does not bar Plaintiff’s claims. If and when a final non-appealable judgment is entered in the Federal Action, the parties may submit full briefing on the issue of whether and to what extent Patino has a viable res judicata defense despite the fact that he was not a party in the Federal Action and the Federal Court’s ruling favored Plaintiff.

The attorneys at Schlam Stone & Dolan frequently counsel clients on relationships between multiple, parallel lawsuits in various forums. Contact the Commercial Division Blog Committee at commercialdivisionblog@schlamstone.com if you or a client have questions concerning such issues.