Party in Privity With Parties in Prior Action Barred from Relitigating Issues

On February 27, 2024, the First Department issued a decision in Shaoul v. Komolov, 2024 NY Slip Op. 00989, holding that a party in privity with the parties in a prior action was barred by res judicata from relitigating issues decided in that action, explaining:

This action is barred by res judicata in view of the final judgment in an action involving plaintiff and defendants High Value Trading LLC and Alskom Realty, LLC regarding the sale or consignment of certain paintings between the parties, which was affirmed by this Court (High Value Trading, LLC v Shaoul, 168 AD3d 641 [1st Dept 2019], lv denied 33 NY3d 910 [2019]).

Under res judicata, or claim preclusion, a valid final judgment bars future actions between the same parties, or those in privity with them, on any claims arising out of the same transaction or series of transactions, even if based upon different theories or if seeking a different remedy. Here, defendant Alexander Komolov, the principal of High Value and Alskom, is in privity with both High Value and Alskom. The claims in this action arise out of the same transaction as the prior action, and contrary to plaintiff’s contention, he could have sought recovery of the paintings in the prior action and thus is precluded from relitigating the issue now.

(Internal citations omitted).

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