The New York Court of Appeals recently granted leave to appeal in City of New York v. Welsbach Elec. Corp., which concerns issues surrounding the doctrine of res judicata.  Welsbach contracted in 1991 with the City of New York to maintain certain traffic lights in Queens County.

A lawsuit between two drivers was commenced in 1994, which included Welsbach and the City as the
defendants, alleging malfunction of the traffic control signal. Welsbach moved for summary judgment in 1997
on two grounds (that it owed
no duty to the public in the performance of its maintenance contract with the
City, and that it timely and completely performed its contractual obligations
to the City). The motion, which was
supported by a detailed and unrebutted affidavit of a traffic signal
maintenance mechanic employed by Welsbach, was granted on both grounds, a final
judgment of dismissal was entered and the City did not appeal. In 2000, the remaining claims were tried and
the City was found negligent and responsible for substantial personal injuries
sustained by individuals involved in the accident. The jury specifically found that each
motorist had a green traffic signal and that neither was negligent.

Subsequently the City appealed, named
Welsbach a respondent, and sought review of the 1997 grant of summary judgment
to Welsbach.  In response to a motion by Welsbach, the City executed a
stipulation withdrawing its attempted and belated appeal of the 1997 Welsbach
judgment of dismissal. This action that was thereafter commenced in 2003.  The Appellate Division, First Department held that the City’s action for common-law and contractual indemnification was barred by the doctrine of res judicata because Welbach’s unrebutted 1997 summary judgment addressed all claims arising out of the underlying accident.

New York Civil Law will keep you apprised of this appeal.