Schwartz v. Public Administrator

246 N.E.2d 725, 24 N.Y.2d 65, 298 N.Y.S.2d 955, 1969 N.Y. LEXIS 1518
CourtNew York Court of Appeals
DecidedFebruary 20, 1969
StatusPublished
Cited by773 cases

This text of 246 N.E.2d 725 (Schwartz v. Public Administrator) is published on Counsel Stack Legal Research, covering New York Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Schwartz v. Public Administrator, 246 N.E.2d 725, 24 N.Y.2d 65, 298 N.Y.S.2d 955, 1969 N.Y. LEXIS 1518 (N.Y. 1969).

Opinions

Keating, J.

Three cases come to us presenting a common and significant question of procedural law: Should a judgment in favor of a passenger in an action against the operators of two colliding vehicles give rise to an estoppel, which would bar a subsequent action by one of the drivers against the other for his own personal injuries or property damage? To put the issue in terms of legal precedent, should Glaser v. Huette (232 App. Div. 119, affd. 256 N. Y. 686) be overruled? We conclude -that the need for a prompt and nonrepetitious judicial system ” and our recent decisions have so undermined the rationale of the Glaser holding that it is no longer viable as a precedent. (Cummings v. Dresher, 18 N Y 2d 105, 107.) With its disappearance, New York law will have arrived at a modern and stable statement of the law of res judicata. Glaser has been replaced by the sound principle that, where it can be fairly said that a party has had a full opportunity to litigate a particular issue, he cannot reasonably demand a second one (Liberty Mut. Ins. Co. v. Colon & Co., 260 N. Y. 305; Good Health Dairy Prods. Corp. v. Emery, 275 N. Y. 14; United Mut. Fire Ins. Co. v. Saeli, 272 App. Div. 951, affd. 297 N. Y. 611; Cohen v. Dana, 275 App. Div. 723, affd. 300 N. Y. 608; Israel v. Wood Dolson Co., 1 N Y 2d 116; Hinchey v. Sellers, 7 N Y 2d 287; Cummings v. Dresher, supra; B. R. De Witt, Inc. v. Hall, 19 NY 2d 141).

Traditionally, collateral estoppel was primarily limited to cases involving indemnity, employment or agency and was permitted in those cases only to avoid the absurd result of having the indemnitor exonerated, while the indemnitee was held liable.

[70]*70We have, however, already discarded, as irrelevant to a proper consideration of the issues in this area, the fact that there may or may not have been any significant jural relationship between the party seeking to invoke the doctrine and the prior victor (Cummings v. Dresher, supra; Israel v. Wood Dolson Co., supra; B.R.De Witt, Inc. v. Hall, supra). Similarly, in our most recent decision in De Witt we stated that the doctrine of mutuality is a dead letter ” (19 1ST Y 2d, p. 147) and we removed the limitation that a prior judgment may only be used defensively.

Nevertheless, absent this most recent decision, Glaser would still have to be overturned (see concurring opn. of Halpern, J., in Ordway v. White, 14 A D 2d 498). For in a long series of cases, starting with Eissing Chem. Co. v. People’s Nat. Bank of Brooklyn (205 App. Div. 89, affd. 237 N. Y. 532); Good Health Dairy Prods. Corp. v. Emery (supra); Cohen v. Dana (supra) and, especially, Israel v. Wood Dolson Co. (supra), we have permitted a defensive use of collateral estoppel so long as there was an identity of issues, and the party against whom the estoppel was being asserted had a full opportunity to contest the issue. “ [T]he fact that a party has not had his day in court on an issue as against a particular litigant is not decisive in determining whether the defense of res judicata is applicable ” (Israel v. Wood Dolson Co., 1 N Y 2d, supra, p. 119; emphasis in the original).

In Good Health Dairy Prods. Corp. v. Emery (supra) we said (275 N. Y., p. 18): ‘ ‘ Behind the phrase res judicata lies a rule of reason and practical necessity. One who has had his day in court should not be permitted to litigate the question anew. Although normally it is necessary that mutuality of estoppel exist, an exception is at times made where the party against whom the plea is raised was a party to the prior action and ‘ had full opportunity to litigate the issue of its responsibility.’ (See Liberty Mutual Ins. Co. v. Colon & Co., 260 N. Y. 305, 312.) Under such circumstances the judgment is held to be conclusive upon those who were parties to the action in which the1 judgment was rendered. Where a full opportunity has been afforded to a party to the prior action and he has failed to prove his freedom from liability, or to establish liability or culpability on the part of another, there is no reason for permitting him to retry these issues. ’ ’

[71]*71Although we have not previously said so, it is now evident that New York has adopted the full and fair opportunity test ■in applying the doctrine of collateral estoppel. (Zdanok v. Glidden Co., 327 F. 2d 944, 956 [2d Cir., Friendly, J.], cert. den. 377 U. S. 934; Graves v. Associated Transp., 344 F. 2d 894, 900 [4th Cir.]; Teitelbaum Furs v. Dominion Ins. Co., 58 Cal. 2d 601 [following through on Chief Justice (then Justice) Traynor’s seminal decision in Bernhard v. Bank of America, 19 Cal. 2d 807]; Ordway v. White, 14 A D 2d 498, 500-501 [Halpern, J., concurring], supra; see, also, Currie, Mutuality of Collateral Estoppel: Limits of the Bernhard Doctrine, 9 Stan. L. Rev. 281; Currie, Civil Procedure: The Tempest Brews, 53 Calif. L. Rev. 25, 31; Polasky, Collateral Estoppel —■ Effects of Prior Litigation, 39 Iowa L. Rev. 217, 250.) New York Law has now reached the point where there are but two necessary requirements for the invocation of the doctrine of collateral estoppel. There must be an identity of issue which has necessarily been decided in the prior action and is decisive of the present action, and, second, there must have been a full and fair opportunity to contest the decision now said to be controlling.

It is in light of these new views that we proceed to re-examine the Glaser decision. The plaintiffs and claimant

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Bluebook (online)
246 N.E.2d 725, 24 N.Y.2d 65, 298 N.Y.S.2d 955, 1969 N.Y. LEXIS 1518, Counsel Stack Legal Research, https://law.counselstack.com/opinion/schwartz-v-public-administrator-ny-1969.