New York’s Transactional Approach to Res Judicata Applies to Issues Which Could Have Been Raised in a Prior Proceeding on the Merits, Even Where Prior Proceeding Was Wrongly Decided

In an action concerning whether plaintiff owned an undivided half interest in property which had been encumbered by a mortgage without plaintiff’s participation, the Second Department determined the complaint was properly dismissed under the doctrine of res judicata because the issues had not been raised in a prior proceeding (even though the issues may have been wrongly decided in that proceeding).  The court explained the relevant legal principles, including New York’s transactional approach to res judicata:

Contrary to the plaintiff’s contention, the Supreme Court properly determined that the doctrine of res judicata precluded the plaintiff from asserting her current claims … . ” Under the doctrine of res judicata, a party may not litigate a claim where a judgment on the merits exists from a prior action between the same parties involving the same subject matter. The rule applies not only to claims actually litigated but also to claims that could have been raised in the prior litigation'” … . Under New York’s transactional approach to res judicata, “once a claim is brought to a final conclusion, all other claims arising out of the same transaction or series of transactions are barred, even if based upon different theories or if seeking a different remedy” … . “The rationale for the doctrine is that a party who has been given a full and fair opportunity to litigate a claim should not be allowed to do so again; allowing relitigation would undermine the interest of the community and the litigants in finality” … . Indeed, “[t]he policy against relitigation of adjudicated disputes is strong enough generally to bar a second action even where further investigation of the law or facts indicates that the controversy has been erroneously decided, whether due to oversight by the parties or error by the courts” … .

Here, the Supreme Court properly granted the … defendants’ cross motion for summary judgment dismissing the complaint insofar as asserted against them on the ground that it was barred by the doctrine of res judicata. The … defendants demonstrated their prima facie entitlement to judgment as a matter of law by presenting evidence that the plaintiff’s claims against them arose from the same operative facts and concerned the same property as the claim she raised against the … defendants in the 2007 action, which was decided on the merits. Moreover, the … defendants demonstrated that all of the claims asserted against them in this action were raised or could have been raised in the 2007 action. In opposition, the plaintiff failed to raise a triable issue of fact … . Myers v Myers, 2014 NY Slip Op 06805, 2nd Dept 10-8-14