Filing a stipulation of dismissal with prejudice can have unintended consequences. The stipulation, of course, will bar a plaintiff from re-asserting the dismissed claims in a later action, but that is not all. It also may preclude the plaintiff from seeking new and different relief; from presenting new evidence, new legal theories or new causes of action; and even from continuing with claims that are being asserted in a different pending action. The stipulation may have these drastic consequences even if the parties intended otherwise, as some recent decisions demonstrate.
Res Judicata Effect
A stipulation of dismissal with prejudice has res judicata effect under New York law. It thus bars not only those claims actually asserted in the first lawsuit, but also “all other claims arising out of the same transaction or series of transactions [as the claims in the first lawsuit]…even if based upon different theories or if seeking a different remedy.”1
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.
For questions call 1-877-256-2472 or contact us at [email protected]
