SPRING SCAFFOLDING LLC v. KRALL (2025)

Order, Supreme Court, New York County (Louis L. Nock, J.), entered on or about August 20, 2024, which granted defendants' motion to dismiss the first amended complaint or stay the action to the extent of staying the action pending final resolution of a related action pending in the United States District Court for the Eastern District of New York, captioned Urban Intelligence Inc. v. Spring Scaffolding LLC (Index No. 1:23–cv–01789), unanimously affirmed, with costs.

Supreme Court did not improvidently exercise its discretion in staying this action in accordance with CPLR 2201 and 3211(a)(4) pending resolution of the first-filed and related federal action.  A stay may be appropriate even absent complete identity of parties when there is substantial identity of both parties and issues such that “the determination of the prior action may dispose of or limit issues which are involved in the subsequent action” (see Syncora Guar. Inc. v. J.P. Morgan Sec. LLC, 110 A.D.3d 87, 96, 970 N.Y.S.2d 526 [1st Dept. 2013];  Belopolsky v. Renew Data Corp., 41 A.D.3d 322, 322–323, 837 N.Y.S.2d 154 [1st Dept. 2007];  Asher v. Abbott Labs., 307 A.D.2d 211, 211, 763 N.Y.S.2d 555 [1st Dept. 2003]).  Contrary to plaintiff's assertion, it is not the only party in common in each action.  Plaintiff alleged that Urban Intelligence Inc. (the plaintiff in the federal action) and Urban Umbrella Enterprises LLC (a defendant in this action) are related and controlled by the same individual and that they committed the same misconduct, including sending the same so-called “Tortious Letters.”  Since plaintiff is seeking “the same damages for the same alleged injuries relating to the same transaction from close corporate affiliates,” the parties have “substantially similar identities for purposes of the first-in-time rule” (Syncora Guar. Inc., 110 A.D.3d at 96, 970 N.Y.S.2d 526 [internal quotation marks omitted]).