Res judicata is a legal principle designed to prevent a party from refiling claims that were adjudicated conclusively in prior litigation. That principle was successfully asserted by a team of Ansell.Law litigators when the United States Court of Appeals for the Second Circuit affirmed a district court victory they obtained against a serial plaintiff who improperly tried for another bite at the apple.
Morgan v. Hartman involved a plaintiff, Michael Morgan, who was the sole owner of a company that provided temporary rehabilitation therapists for healthcare facilities. Morgan agreed to sell his business to a company owned by Ansell.Law’s clients.
The parties’ relationship deteriorated after the closing, resulting in litigation. The parties settled many of the issues and agreed to binding arbitration to resolve their remaining disputes. An arbitrator issued a final arbitration award, which was confirmed and entered as a judgment by the New York State Supreme Court. Morgan simultaneously filed two other state court lawsuits arising from the same issues.
Notwithstanding his unappealable arbitration loss, Morgan then filed yet another lawsuit against the defendants, this time in federal court. Like his state court suits, Morgan’s federal lawsuit asserted claims arising from and relating to the purchase of his business.
Ansell.Law moved to dismiss Morgan’s claims on the grounds that they were barred under the doctrine of res judicata. The United States District Court for the Southern District of New York agreed and dismissed the lawsuit. But Morgan continued to pursue his claims, appealing the district court’s ruling to the Second Circuit.
On appeal, Ansell.Law’s Anthony D’Artiglio, Layne Feldman, and Anthony Sango successfully defended the dismissal, with the court agreeing that “Because the claims asserted in this action arise from the same factual grouping as the previously litigated claims, the district court was correct that the action is barred by the doctrine of res judicata.”
The Firm congratulates Anthony, Layne, and Anthony for their excellent work in obtaining this decisive victory for our clients.
