Hillman v Khedaroo
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Attorneys and Parties
Brief Summary
Personal injury and New York civil procedure, specifically whether a prior dismissal because another action was pending can bar a later suit under res judicata, and whether a default judgment should be entered against a non-answering defendant.
The Supreme Court, Kings County, granted the defendants' motions under CPLR 3211(a)(5) [rule allowing dismissal based on certain defenses, including res judicata] and dismissed the complaint against Asher Benedikt, Arjune W. Khedaroo, and Wheels LT, while denying as academic the plaintiffs' request for a default judgment against Benedikt under CPLR 3215 [rule governing default judgments].
The Appellate Division reversed the dismissal, denied the defendants' CPLR 3211(a)(5) motions, and granted the plaintiffs leave to enter a default judgment against Benedikt.
The prior May 2023 dismissal of the second action under CPLR 3211(a)(4) [rule permitting dismissal when another action is pending between the same parties for the same relief] was not a determination on the merits and was not a default judgment against the plaintiffs, so it had no res judicata effect. The plaintiffs also made a facially sufficient showing for default judgment against Benedikt, and he failed to show either no default or a reasonable excuse and a potentially meritorious defense.
Background
The case arose from an August 16, 2020 motor vehicle accident in which a car operated by Charles L. Clarke and owned by Asher Benedikt, carrying the plaintiffs as passengers, collided with a vehicle operated by Arjune W. Khedaroo and owned by Wheels LT. The plaintiffs first sued in February 2021, but no affidavits of service were filed. They then started a second action in August 2021. In May 2023, that second action was dismissed because the first action was still pending. The first action was later voluntarily discontinued without prejudice. In July 2023, the plaintiffs commenced this action. Benedikt did not timely answer, so the plaintiffs sought a default judgment. Benedikt and the Wheels LT defendants instead argued that the action was barred by res judicata based on the earlier dismissal of the second action.
Lower Court Decision
The Supreme Court accepted the defendants' res judicata argument and dismissed the complaint insofar as asserted against Benedikt, Khedaroo, and Wheels LT. Because it dismissed the claims, it effectively denied as academic the plaintiffs' motion for a default judgment against Benedikt.
Appellate Division Reversal
The Appellate Division held that the May 2023 order dismissing the second action because another action was pending was not a merits determination and therefore could not support res judicata. It also held that the plaintiffs had submitted proof of service, proof of the facts constituting their claim, and proof of Benedikt's default, satisfying the requirements for a default judgment. Since Benedikt failed to rebut that showing, the appellate court denied the dismissal motions and granted the plaintiffs' request for a default judgment against him.
Legal Significance
This decision confirms that a dismissal for another action pending does not, without more, operate as a merits adjudication for res judicata purposes. It also reinforces that a defendant opposing a facially sufficient default judgment motion must show either that no default occurred or that there is both a reasonable excuse and a potentially meritorious defense.
A prior dismissal based only on the pendency of another action does not bar a later refiled case under res judicata, and a plaintiff who proves service, the claim, and the defendant's failure to answer is entitled to a default judgment unless the defendant makes the required opposing showing.