Declaratory judgment action (again) moots the underlying Civil Court action

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Lms Acupuncture, P.C. v American Tr. Ins. Co., 2015 NY Slip Op 50198(U)(App. Term 2d Dept. 2015)

On May 8, 2013, the Supreme Court granted, on default, American Transit’s motion. By order entered June 7, 2013, the Civil Court denied LMS Acupuncture, P.C.’s motion for summary judgment, in light of the Supreme Court’s determination in the declaratory judgment action. On August 1, 2013, the Supreme Court signed a long-form order embodying its determination.

Based upon the declaratory judgment action in Supreme Court, the instant action is barred under the doctrine of res judicata…To hold otherwise could result in a judgment in the present action which would destroy or impair rights or interests established in the Supreme Court action.  We note that any contention that the Supreme Court’s May 8, 2013 determination was not a final disposition has been rendered moot by the entry of the August 1, 2013 long-form order.

This decision apparently allows a decision requiring the settlement of an order to serve to defeat a summary judgment motion.  Furthermore, the appeal of the Civil Court order allows a subsequently entered judgment to serve as grounds for reverse judgment.

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