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Case Notes
Two Lawsuits, No Collateral Estoppel
The District Court of Nassau County, NY, has held that although a landlord was ordered to sell her commercial property to her tenant in accordance with the terms of the parties' lease, the tenant was not entitled to summary dismissal of the landlord's second suit seeking unpaid rent, as the rent claims were for amounts due post-decision and they were not raised or addressed in the prior lawsuit. Carter v. 126 Henry St. Inc., NYLJ, DOI; Pg. 29; Vol. 260, No. 56.
Landlord Betty Cator leased a commercial property in Hempstead, NY, to 126 Henry Sreet Inc., which does business as Village Auto Clinic (Village Auto). Village Auto commenced an action in Nassau County Supreme Court alleging breach of the lease and seeking specific performance of Cater's agreement to sell the property to Village Auto. Cater brought a second suit in response, in which she claimed that Village Auto had not paid its contractually agreed rent. The two lawsuits were joined for trail in Nassau County Supreme Court in March of 2015.
By June of 2015 the matter was still dragging because Cater's attorney was no longer on the case. The court therefore stayed the proceeding for 60 days but also gave Cater a warning that if she failed to appear for the next scheduled conference a default judgment would be entered against her. The court was more generous than that, waiting until Cater had failed to appear three times before entering default judgment for Village Auto by granting it the order for specific performance of the sale contract, to be performed within 90 days of the order. The court simply dismissed the non-payment-of-rent portion of the suit.
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