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Current Developments in the Commercial Divisions of the
New York State Courts by Schlam Stone & Dolan LLP
Posted: March 15, 2021

Party’s Claims, Which Were Inconsistent With Claims it Successfully Advanced in Different Action, Barred by Judicial Estoppel

On March 4, 2021, the First Department issued a decision in Great Ajax Operating Partnership L.P. v. PCG REO Holdings, LLC, 2021 NY Slip Op. 01324, holding that a party’s claims, which were inconsistent with claims it successfully advanced in a different action, were barred by the doctrine of judicial estoppel, explaining:

Plaintiff’s claims arising from the sale of the mortgage loan secured by a property in New Jersey were properly dismissed as barred by judicial estoppel. Plaintiff procured a judgment in its favor as a result of the inconsistent positions taken before a New Jersey court, where it argued that it owned the $185,000 note and mortgage that listed the incorrect address due to a scrivener’s error, the note and mortgage were valid, and a satisfaction of mortgage was incorrectly filed.

(Internal quotations and citations omitted).

As this decision shows, courts have little patience with litigants who appear to take inconsistent factual positions.

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