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Schiff v. Gruenspan

Appellate Division of the Supreme Court of New York, Second Department
Oct 29, 1990
166 A.D.2d 698 (N.Y. App. Div. 1990)

Opinion

October 29, 1990

Appeal from the Supreme Court, Kings County (Golden, J.).


Ordered that the order is affirmed, with costs.

The plaintiffs and the defendants were all shareholders in a corporation, the sole asset of which was a building located at 902 44th Street in Brooklyn. In 1983, the Supreme Court, Queens County (Kassoff, J.), issued an order and judgment confirming an arbitrator's award and, inter alia, directing an accounting with respect to the property. In 1985 the property was sold and the corporation dissolved.

In 1986 the plaintiffs served a demand for arbitration. Their claim was that the defendants "maintained a bank account with European American Bank preciously [sic] unknown to [the plaintiffs]". The defendants commenced a proceeding to stay arbitration. By judgment dated September 9, 1986, the Supreme Court, Queens County (Sacks, J.), granted the application to stay arbitration "on default", holding that "the issues herein [were] previously arbitrated and decision herein confirmed by * * * Justice Kassoff".

The plaintiffs then brought the instant action which alleges, inter alia, that the "defendants without knowledge of plaintiffs opened an account [in the] European American Bank". After issue had been joined, the Supreme Court granted the defendants' motion for (1) leave to amend their answer to assert the defense of res judicata, and (2) summary judgment dismissing the complaint. We affirm.

Firstly, we conclude that the Supreme Court did not improvidently exercise its discretion in granting the defendants leave to amend their answer (see, CPLR 3025 [b]; see, e.g., McCaskey Davies Assocs. v. New York City Health Hosps. Corp., 59 N.Y.2d 755 [addition of defense of Statute of Limitations]; Shepherd v. New York City Tr. Auth., 129 A.D.2d 574 [addition of defense of release]; Polow v. Quiros, 128 A.D.2d 763 [addition of defense of bankruptcy]; Barnes v. County of Nassau, 108 A.D.2d 50 [addition of defense of immunity]; 3 Weinstein-Korn-Miller, NY Civ Prac ¶ 3025.14).

Secondly, we conclude that the Supreme Court correctly granted summary judgment in favor of the defendants based on the defense of res judicata. It has been conclusively shown that the claims made in the present action actually were, or could have been, previously advanced by the plaintiffs. Indeed, in the judgment dated September 9, 1986, which was never appealed from or vacated, Justice Sacks held that the plaintiffs were precluded from raising their claims. Pursuant to New York's "transactional" analysis of the doctrine of res judicata, the complaint was properly dismissed (see generally, McNally Intl. Corp. v. New York Infirmary-Beekman Downtown Hosp., 145 A.D.2d 417; Ecker v. Lerner, 123 A.D.2d 661). Bracken, J.P., Eiber, Balletta and Rosenblatt, JJ., concur.


Summaries of

Schiff v. Gruenspan

Appellate Division of the Supreme Court of New York, Second Department
Oct 29, 1990
166 A.D.2d 698 (N.Y. App. Div. 1990)
Case details for

Schiff v. Gruenspan

Case Details

Full title:ISAAC W. SCHIFF et al., Appellants, v. MORITZ GRUENSPAN et al., Respondents

Court:Appellate Division of the Supreme Court of New York, Second Department

Date published: Oct 29, 1990

Citations

166 A.D.2d 698 (N.Y. App. Div. 1990)
561 N.Y.S.2d 283

Citing Cases

Jimenez v. Shippy Realty

Where appropriate, leave to amend an answer to plead res judicata may be granted. (Schiff v Gruenspan, 166…