64 West Park Avenue Corp. v. Parlong Realty Corp.

77 Misc. 2d 1019, 354 N.Y.S.2d 342, 1974 N.Y. Misc. LEXIS 1291
CourtNew York Supreme Court
DecidedMarch 26, 1974
StatusPublished
Cited by4 cases

This text of 77 Misc. 2d 1019 (64 West Park Avenue Corp. v. Parlong Realty Corp.) is published on Counsel Stack Legal Research, covering New York Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
64 West Park Avenue Corp. v. Parlong Realty Corp., 77 Misc. 2d 1019, 354 N.Y.S.2d 342, 1974 N.Y. Misc. LEXIS 1291 (N.Y. Super. Ct. 1974).

Opinion

Bertram Harnett, J.

Does a default judgment dismissing a counterclaim in a small claims action in the Nassau County District Court operate to bar further litigation in the State Supreme Court on the issues raised in that pleading? Motions to dismiss this action upon the ground of res judicata raise this unusual point.

We rule below that there is such a res judicata. We rest this view in the need to end litigation after full and fair opportunity to be heard, and in the need to curtail procedural attenuations which sap the vitality of the litigative process.

A. THE CAUSES ASSERTED NOW AND BEFORE

64 West Park Avenue Corp. owns property of its namesake address in Long Beach, New York. It was a defendant in a small claims action brought on May 26, 1972 in the Second District Court of Nassau County, Lynbrook Part, by Dr. Norman L. Kanfer, a tenant, for return of a security deposit. In its answer dated July 10, 1972, “ 64 ”, the landlord, asserted a two-pronged counterclaim against Dr. Kanfer, Peter Alpern, Esther Alpern, and Parlong Realty Corp. It sought damages of $10,000 in its claim that the tenants improperly removed, fixtures from the building, and $5,000 because of claimed property destruction by the tenant.

11 64 ” failed to appear at trial, and, on December 19, 1972, a default judgment was entered against it granting in the primary action a money award representing the security deposit and dismissing the counterclaim, with costs. Its motion to vacate [1021]*1021the default was denied by District Court order dated February 14, 1973 as being without merit. No appeal was taken from either the judgment or order. The security deposit was returned, with interest, as directed.

Then, in December, 1973, this action was commenced in the Supreme Court by ‘1 64 ” against the same Parlong Realty Corp., Esther Alpern, Peter Alpern, and Norman L. Kanfer. The complaint makes three claims. However, the second and third causes of action seek exactly the same $10,000 and $5,000 for the same improper removal and destruction claimed in the District Court action. The first cause of action claims $10,200 in damages upon oral misrepresentation by defendants Parlong and Alpern, who are alleged to have stated that the security on deposit from Dr. Kanfer was $200, instead of1 the $400 actually deposited, and that the fixtures belonged to them, when in fact Dr. Kanfer owned them.

B. DISMISSAL UPON BBS JUDICATA

Parlong and the Alperns move now to dismiss the first cause of action. Dr. Kanfer moves to dismiss the second and third causes of action. Both motions contend that the prior District Court counterclaim dismissal is a res judicata bar to the claims now made.

1. COUNTBBCLAIM IN SMALL CLAIMS COURT

For purposes of determining res judicata effect, a judgment rendered upon a counterclaim is no different than one made upon a primary claim in a complaint. (Granite Bond & Mtge Corp. v. Hutchins, 225 App. Div. 412; American Capital Corp. v. Duralab Equip. Co., 39 Misc 2d 1057.) It is a vehicle for securing affirmative relief upon a separate claim which, though not compulsory, is permitted for reasons of judicial economy to be asserted in the primary action as opposed to a separate lawsuit. The parties in this action and in the third-party action in the District Court are identical.

Bes judicata, meaning “a matter adjudged”, Black’s Law Dictionary, 1470 (4th ed., 1951), is the conclusive establishment of legal relations between parties by virtue of a final judgment. Bes judicata effect is given to judgments of limited as well as general jurisdiction. (Hallock v. Dominy, 69 N. Y. 238.) A judgment then acts to bar a subsequent action raising the same causes of action. (Schuylkill Fuel Corp. v. Nieberg Realty Corp., 250 N. Y. 304; Perry v. Dickerson, 85 N. Y. 345.) Identity of causes in two actions of which one has proceeded to judgment is determined by whether a different judgment in the remaining [1022]*1022action would impair the rights adjudged in the first. (Andrews v. Merrywood Country Club, 28 A D 2d 865.)

2. CAUSES OF ACTION COMPABED

The first cause of action here, claiming fraud and misrepresentation, was not the cause of action set forth by “ 64 ” in its prior District Court counterclaim. There was no monetary damage claimed for oral misstatements, indeed no falseness or deceit claimed at all. Only a “personal representation” by the Alperns that the leasehold at 64 West Park Avenue “ would be made part of the said contract of sale ” was alleged without any further mention. No reference is made to the amount of the security deposit, nor to the ownership of fixtures. There being then a lack of identity in causes of action, the judgment dismissing the counterclaim is not a res judicata bar to the first cause of action here. (Bell v. Herzog, 39 A D 2d 813.)

In contra-distinction, the second and third causes of action here are virtual carbon copies of the District Court counterclaim. The underlying grounds alleged, conversion of fixtures and tenant damage to premises upon vacating, are identical in both pleadings. The dollar damage claimed is exactly the same. No additional factors or elements were added in the later claim. There is some slight amplification now in detail of fixture removal and building destruction, but not beyond the reasonable inference of the prior counterclaim, and, in any event, included within the scope of the bill of particulars served in response to Dr. Kanfer’s demand in the District Court. A judgment in favor of plaintiff here would inevitably impair rights accruing to Dr. Kanfer from the prior judgment of dismissal.

3. ELEMENT OF DEFAULT

The only remaining issue is whether the element of default in the prior judgment prevents its having res judicata impact. In New York, a default judgment may preclude another suit on the same cause of action even where no detailed inquest is held prior to entry. (Parker v. Hoefer, 2 N Y 2d 612, cert. den. 355 U. S. 833; Mitchell v. Insurance Co. of North Amer., 40 A D 2d 873; see Spindell v. Brooklyn Jewish Hosp., 35 A D 2d 962, affd. 29 N Y 2d 888; 5 Weinstein-Korn-Miller, N. Y. Civ. Prac., par. 5011.12.) In applying the doctrine to default judgments, the courts discourage the bringing of separate litigation based on claims already asserted and determined. (See 9 Carmody-Wait 2d New York Practice, § 63:225.) They seek to minimize the prospect of inconsistent judgments. Where just cause of excuse [1023]*1023or undue harshness can he shown, they seek to channel post-judgment litigation into the forum where pretrial preparation has already taken place. (See Restatement, Judgments, § 59.)

One commentator has said that giving res judicata effect in such circumstances “ remind [s] the practitioner that a default judgment is not a weakling under New York law; it carries equal weight with a post-trial judgment not only for enforcement purposes in the case itself but for estoppel purposes in future cases”. (D. Siegel, Practice Commentaries in McKinney’s Cons. Laws of N.

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Bluebook (online)
77 Misc. 2d 1019, 354 N.Y.S.2d 342, 1974 N.Y. Misc. LEXIS 1291, Counsel Stack Legal Research, https://law.counselstack.com/opinion/64-west-park-avenue-corp-v-parlong-realty-corp-nysupct-1974.