TZANAKAKIS v. Jaime Leroux, et al., Defendants. (2024)

Order, Supreme Court, New York County (Jennifer Schecter, J.), entered August 19, 2022, which granted defendants TBS Shipping Services, Inc. (TBS), Guardian Navigation Services, Inc., Joseph E. Royce, and Lawrence A. Blatte's motions to dismiss the amended complaint, unanimously affirmed, without costs.

Supreme Court properly dismissed the amended complaint as barred by collateral estoppel.  The allegations in plaintiff's third amended complaint in the federal action were substantially identical to her amended complaint herein.  The federal action was dismissed because plaintiff failed to establish standing.  That is, she did not own the shares that were allegedly stolen, instead her husband, Alkiviades Meimaris did, although she claimed she inherited those shares (see Parker Madison Partners v. Airbnb, Inc., 184 A.D.3d 544, 545, 124 N.Y.S.3d 547 [1st Dept. 2020] [“the issue of plaintiff's injury was ‘necessarily ․ decided’ in the prior federal action between the parties, and plaintiff was granted a ‘full and fair opportunity to contest’ that finding”], quoting Buechel v. Bain, 97 N.Y.2d 295, 303–304, 740 N.Y.S.2d 252, 766 N.E.2d 914 [2001], cert denied 535 U.S. 1096, 122 S.Ct. 2293, 152 L.Ed.2d 1051 [2002]).

While plaintiff brought the federal action in her capacity as representative of Alkiviades Meimaris's estate, she also brought individual claims, as she does here, and the dismissal of those individual claims bars plaintiff from relitigating those claims here.

Plaintiff unpersuasively relies on the fact that the federal action was dismissed without prejudice.  “[W]here a case is dismissed for lack of Article III standing ․ that disposition cannot be entered with prejudice, and instead must be dismissed without prejudice” (Katz v. Donna Karan Co., L.L.C., 872 F.3d 114, 121 [2d Cir.2017]).  As the motion court observed, that does not mean that plaintiff may simply litigate elsewhere.

We have considered plaintiff's remaining contentions and find them unavailing.