Merrimack Mutual Fire Ins. Co. v. Feldman Plumbing & Heating Corp., 102 A.D.3d 754, 2013 WL 163822 (App. Div. 2d Dept. 1/16/13)

Dismissal of negligence action in small claims court precludes insurer from seeking subrogation in trial court.

The insured brought small claims action against Feldman Plumbing for damages sustained to their dwelling. The court dismissed the action because the insured failed to meet his burden of proving that Feldman Plumbing acted negligently. The insurer subsequently brought an action against Feldman Plumbing in the Supreme Court, seeking subrogation since it paid the insureds for the loss under their policy. The court granted Feldman Plumbing's motion to dismiss based upon the doctrine of res judicata. Because the claim brought by the insurer against Feldman Plumbing is exactly the same as the claim originally initiated by the insureds, the insurer's claim is barred.

Case Law Alerts, 3rd Quarter 2013