Dismissal in Favor of a Prior Pending Action Denied Because the Actions Not Substantially Identical

On April 12, 2023, Justice Crane of the New York County Commercial Division issued a decision in Pragad v. Davis, 2023 NY Slip Op. 31210(U), declining to dismiss in favor of a prior pending action because the actions were not substantially identical, explaining:

The court denies Davis’s motion to dismiss the Pragad and NW Media Actions pursuant to CPLR 321 l(a)(4). In order to dismiss an action on the basis of a prior pending action pursuant to CPLR 3211(a)(4), the movant must establish both identity of the parties and the causes of action asserted.

Dismissal under CPLR 3211(a)(4) is not warranted because the Pragad and NW Media Actions are not substantially identical to the Davis Action. The Davis Action is fundamentally about Pragad’s alleged wrongdoing· in breach of his fiduciary duties to Davis and NW Media while the Pragad/NW Media Actions, on the other hand, include causes of action for conversion and misappropriation of trade secrets based on allegations that Defendants Uzac, Jang, Choi, and Davis conspired to destroy
Newsweek documents and misappropriated Newsweek proprietary information. Thus, the court declines to dismiss the Pragad/NW Media Actions pursuant to CPLR 3211(a)(4).

(Internal citations omitted).

Stay informed!
Sign up for email alerts and notifications here.
Read more about our Complex Commercial Litigation practice.