Ahmed Medical Care, P.C., as Assignee of October, Sigmund, Appellant, v. State Farm Mutual Automobile Ins. Co., Respondent. (2023)

ORDERED that the order, insofar as appealed from, is affirmed, with $25 costs.

In October of 2017, plaintiff Ahmed Medical Care, P.C. (Ahmed) commenced this action against defendant State Farm Mutual Automobile Ins. Co. (State Farm) to recover $892.14 in assigned first-party no-fault benefits for services Ahmed rendered to its assignor, Sigmund October, for injuries the assignor allegedly sustained in a motor vehicle accident on March 9, 2015. The services were rendered on six dates between June 23, 2015 and November 18, 2015.

State Farm moved for summary judgment dismissing causes of action (1), (2), (3), (4) and (6) on the ground that they were barred by the doctrine of res judicata and/or collateral estoppel by virtue of a declaratory judgment issued by the Supreme Court, Nassau County, in a declaratory judgment action commenced by State Farm against Ahmed. In a support of the motion, State Farm's counsel stated that, following Ahmed's default in appearing in the Supreme Court action, a judgment was entered on April 1, 2016 (Antonio I. Brandveen, J.) which declared that Ahmed had no right to receive payment from State Farm for any claims set forth in the chart attached to the Supreme Court complaint because the assignor had failed to appear for examinations under oath. State Farm attached to its Civil Court motion a copy of the chart containing the precluded claims. State Farm's counsel further stated that Ahmed's motion to vacate its default in appearing in the Supreme Court action was denied in an order entered September 2, 2016. Ahmed cross-moved in the Civil Court for summary judgment on all six causes of action. Ahmed's counsel argued, as is relevant here, that the declaratory judgment action has no preclusive effect on this action since it was granted on default.

In an order dated September 2, 2020, the Civil Court granted State Farm's motion for summary judgment dismissing causes of action (1), (2), (3), (4) and (6), and granted Ahmed's cross motion for summary judgment only with respect to the fifth cause of action. Ahmed appeals.

Initially, Ahmed's contention that the copy of the chart of the claims barred by the declaratory judgment attached to State Farm's motion was illegible and should not have been considered is without merit (see Bronx Med. Diagnostic, P.C. v Hereford Ins. Co., 65 Misc 3d 146[A], 2019 NY Slip Op 51793[U] [App Term, 2d Dept, 2d, 11th & 13th Jud Dists 2019]).

"Under the doctrine of res judicata, a final adjudication of a claim on the merits precludes relitigation of that claim and all claims arising out of the same transaction or series of transactions by a party or those in privity with a party" (Ciraldo v JP Morgan Chase Bank, N.A., 140 AD3d 912, 913-914 [2016]; see Matter of Hunter, 4 NY3d 260, 269 [2005]; Schuylkill Fuel Corp. v Nieberg Realty Corp., 250 NY 304, 306-307 [1929]). " 'A judgment by default that has not been vacated is conclusive for res judicata purposes and encompasses the issues that were raised . . . in the prior action' " (Tracey v Deutsche Bank Natl. Trust, 187 AD3d 815, 817 [2020], quoting Eaddy v US Bank N.A., 180 AD3d 756, 758 [2020]; see North Val. Med., P.C. v Permanent Gen. Assur. Corp., 74 Misc 3d 127[A], 2022 NY Slip Op 50048[U] [App Term, 2d Dept, 2d, 11th & 13th Jud Dists 2022]).

As defendant's moving papers sufficiently established that the assignor, claims, date of loss and dates of service relevant to causes of action (1), (2), (3), (4) and (6) in the case at bar are the same as those referenced in the Supreme Court declaratory judgment which rendered a final adjudication of those claims on the merits (see Ciraldo, 140 AD3d at 913), causes of action (1), (2), (3), (4) and (6) in the instant Civil Court action were barred under the doctrine of res judicata. Consequently, the Civil Court properly granted State Farm's motion for summary judgment dismissing those causes of action (see ZG Chiropractic Care, P.C. v 21st Century Ins. Co., 70 Misc 3d 138[A], 2021 NY Slip Op 50079[U] [App Term, 2d Dept, 2d, 11th & 13th Jud Dists 2021]; Valdan Acupuncture, P.C. v Nationwide Mut. Fire Ins. Co., 64 Misc 3d 134[A], 2019 NY Slip Op 51098[U] [App Term, 2d Dept, 2d, 11th & 13th Jud Dists 2019]; EBM Med. Health Care, P.C. v Republic W. Ins., 38 Misc 3d 1 [App Term, 2d Dept, 2d, 11th & 13th Jud Dists 2012]), since any judgment in favor of plaintiff in this action would destroy or impair rights or interests established by the declaratory judgment action (see Schuylkill Fuel Corp., 250 NY at 306-307; North Val. Med., P.C., 2022 NY Slip Op 50048[U]; ZG Chiropractic Care, P.C., 2021 NY Slip Op 50079[U]; Valdan Acupuncture, P.C., 2019 NY Slip Op 51098[U]; EBM Med. Health Care, P.C., 38 Misc 3d at 2).

Accordingly, the order, insofar as appealed from, is affirmed.

TOUSSAINT, P.J., BUGGS and MUNDY, JJ., concur.

ENTER:

Paul Kenny

Chief Clerk

Decision Date: February 24, 2023