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Matter of Lindenwood Cut Rate Liquors, Ltd. v. New York State Liq. Auth.

Citation: 2018 NY Slip Op 3680Docket: 2017-05813

Court: Appellate Division of the Supreme Court of the State of New York; May 23, 2018; New York; State Appellate Court

Original Court Document: View Document

Narrative Opinion Summary

The case involves Lindenwood Cut Rate Liquors, Ltd.'s challenge to a 30-day liquor license suspension imposed by the New York State Liquor Authority. The initial petition was dismissed by the Supreme Court on grounds of res judicata and statute of limitations, following a prior proceeding that was marked off the calendar due to non-appearance and subsequently dismissed for lack of an affidavit of merit. On appeal, the Appellate Division, Second Department, reversed the dismissal, holding that CPLR 205(a) applies to special proceedings, allowing the petitioner to initiate a new proceeding since the prior dismissal was procedural rather than on the merits. The Appellate Division found that the doctrine of res judicata did not apply, and the dismissal was not with prejudice, thus reinstating the petition and remitting the case to the Supreme Court, Queens County, for a determination on its merits. The appellate court concluded that the Authority's objections lacked merit, with all judges concurring in the decision.

Legal Issues Addressed

Application of CPLR 205(a) to Special Proceedings

Application: The court determined that CPLR 205(a), which allows for a new action after a prior action is dismissed not on the merits, applies to special proceedings.

Reasoning: Upon appeal, the Appellate Division reversed the lower court's decision. It determined that CPLR 205(a) applies to special proceedings, and that the prior dismissal was not on the merits since it was marked off the calendar.

Dismissal Not on the Merits

Application: The court held that a dismissal marked off the calendar for failure to appear and without prejudice does not constitute a dismissal on the merits, allowing for refiling.

Reasoning: The petitioner had attempted to contest the suspension through a prior proceeding, which was marked off the calendar after it failed to appear at a scheduled hearing.

Doctrine of Res Judicata

Application: The appellate court found that res judicata did not bar the new action since the prior dismissal was procedural and not a determination on the merits.

Reasoning: This meant that the doctrine of res judicata did not bar the new action.