Ostapenko v. George A. Fuller Co.

27 Misc. 2d 93, 208 N.Y.S.2d 591, 1960 N.Y. Misc. LEXIS 2025
New York Supreme Court·Decided December 14, 1960·Published·Cited by 4 cases

Opinion

Matthew M. Levy, J.

A building was in process of being erected in New York City. Fuller was the general contractor. Rizzi was the concrete subcontractor. An agreement of indemnity bound Rizzi to Fuller, in the event that Fuller should be found liable for injuries occurring on the premises as a result of Rizzi’s performance on the job. Ostapenko was employed by Rizzi. While working, Ostapenko was injured by a driftpin alleged to have been negligently dropped by American, the steel subcontractor. Ostapenko sued American, and, after trial, there was a general verdict and judgment in favor of American on the merits, which determination was affirmed on appeal. Thereupon, Ostapenko commenced this action against Fuller, the general contractor. The complaint here alleges liability upon the common-law ground of negligence, as well as for violation of provisions of the Labor Law in that Fuller failed to provide a safe place to work. The answer consists of a general denial. On the basis of the contract of indemnity, Fuller, the present defendant—as a third-party plaintiff—brought in Rizzi as a third-party defendant. Then Rizzi — as a fourth-party plaintiff — brought in American on the theory of liability for common-law indemnity, in that American was allegedly the primary and active tort-feasor.

There is now before me for disposition a motion by American, the fourth-party defendant, in pursuance of subdivision 4 of rule 106 and subdivision 4 of rule 107 of the Rules of Civil Practice, to dismiss Rizzi’s fourth-party complaint upon the grounds, respectively, that (a) the fourth-party complaint fails to state facts sufficient to constitute a cause of action in favor of Rizzi against American, and (b) that, by virtue of American’s successful defense of the earlier action against it when sued directly by Ostapenko, there is an existing final judgment of a court of competent jurisdiction rendered on the merits determin[95] ing the cause of action insofar as American’s liability to Eizzi is concerned.

I shall consider, first, the question whether the prior judgment in American’s favor when sued by Ostapenko is a bar to Eizzi’s suit against American. .

The general precept of res judicata is a simple one, and is relied upon by Eizzi. It has been stated as follows: “A fact or question which was in issue in a former suit, and was there judicially passed on and determined by a domestic court of competent jurisdiction, is conclusively settled by the judgment therein, as far as concerns the parties to that action and persons in privity with them, and cannot be again litigated in any future action between such parties or privies, in the same court or in any other court of concurrent jurisdiction, on either the same or a different cause of action, while the judgment remains unreversed, unmodified, or unvacated by proper authority” (50 C. J. S., Judgments, § 686, pp. 141-142■—italics supplied). But, although “ some criteria have been traditionally and consistently employed ”, “ there is probably no area of our law less susceptible of rigid formulation and definition than that of res judicata (Statter v. Statter, 2 N Y 2d 668, 671).

Eizzi contends that he should have an opportunity to present his claim against American—which, says Eizzi, is simply to be made whole in the event he is required to indemnify Fuller. Eizzi urges that the prior judgment should not bar his claim in the instant case, for he was not a party to the Ostapenko suit nor in privity with him. The problem is not without difficulty and, unfortunately, without precise precedent. Upon study, I find that Eizzi’s arguments are less than persuasive.

Let me-—-for clarification — return to a statement of the facts and then restate the conclusion projected by Eizzi: Ostapenko was injured—allegedly by American. But American has been held not liable to Ostapenko. Ostapenko sues Fuller. Fuller may be found liable. If that happens, then Eizzi may be required to indemnify Fuller, by virtue of their contract. Eizzi seeks to hold American as indemnitor by virtue of American’s alleged primary liability. If this last claim is permitted to stand, then American will have to indemnify Eizzi because Eizzi has to indemnify Fuller because Fuller was found liable to Ostapenko. The ultimate result would be that American would be compelled +o pay for an injury after it was determined that there was no liability on American’s part for that injury. Such a consequence is not supported by any authority cited to me or that independent search could unearth. And it seems so incongruous and illogical to me that I do not propose by my decision to [96] establish a precedent to that effect. I shall undertake to explain why.

I agree with Rizzi that he was not, on the basis of being Ostapenko’s employer, “privy” to the latter’s suit against American. For the subject of the earlier suit did not, and the subject of the present litigation does not, concern the employment or the relationship based upon it. But I hold, nevertheless, that, since Rizzi’s rights as against American are necessarily dependent upon, and derivative from, Ostapenko’s rights, Rizzi is bound by the earlier judgment of American against Ostapenko.

Under the circumstances here presented, Rizzi’s obligation to Ostapenko does not rise any higher than that of Fuller’s to Ostapenko. For, since Fuller claims indemnity from Rizzi on the basis of a contractual obligation only, it is plain that, if Fuller is not liable to Ostapenko, Rizzi’s agreement to indemnify Fuller does not at all come into play. As a consequence, I deem myself warranted, when analyzing the legal status of the respective parties on this application, in ignoring Rizzi as a third-party defendant or a fourth-party plaintiff in this action.

As to American’s liability to Fuller, it appears from the papers before me that Ostapenko rests his claim against Fuller upon the ground of Fuller’s personal negligence and Fuller’s failure to provide Ostapenko with a safe place to work, and that American’s act in negligently dropping the steel driftpin upon Ostapenko was the alleged precipitating cause of the injury. That being so, had Fuller directly impleaded American as the primary and active wrongdoer — and had therefore sought common-law indemnity from American — Fuller’s rights against American would necessarily be derived from Ostapenko’s rights against American on the basis of the very same alleged act of the latter’s primary and active negligence. (Of. Restatement, Judgments, § 96, subd. [1], par. [a].)

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Ostapenko v. George A. Fuller Co., 27 Misc. 2d 93, 208 N.Y.S.2d 591, 1960 N.Y. Misc. LEXIS 2025 (N.Y. Super. Ct. 1960).

27 Misc. 2d 93 (Ostapenko v. George A. Fuller Co.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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