2005 NY Int. 149
CIPARICK, J.:
Plaintiff Xiao Yang Chen and defendant Ian Ira Fischer
were married on March 11, 2001. Shortly thereafter, Fischer
commenced an action for divorce on the ground of cruel and
inhuman treatment. Chen counterclaimed for divorce -- also
alleging cruel and inhuman treatment -- and asserted an
additional cause of action for fraudulent inducement.
Specifically, as grounds for divorce, Chen alleged that on May 6,
2001, Fischer "grabbed [her] and violently slapped her across the
face and ear causing [her] to suffer bruising, pain and swelling"
and that he threw her on the ground and attempted to suffocate
her. As a result of that incident, each party filed a family
offense petition against the other in Family Court and received a
temporary order of protection. The parties agreed to consolidate
these petitions with the matrimonial action. At the conclusion
of the matrimonial trial, they further agreed to withdraw the
petitions without prejudice on the record in open court.
On October 15, 2001, prior to trial of the matrimonial
action, the parties entered into a stipulation on the issue of
fault. "[I]n satisfaction of the stipulation," the parties
agreed to withdraw all their fault allegations -- including those
related to the May 6 incident -- save one. After trial on the
remaining issues -- including equitable distribution and a
fraudulent inducement cause of action -- on May 8, 2002 a dual
judgment of divorce was granted on the ground of cruel and
inhuman treatment based on each party's sole remaining fault
allegation.
Chen allegedly commenced the instant personal injury
action on January 18, 2002, while the matrimonial action was
pending.[1]
The complaint asserted two causes of action -- one for
intentional infliction of emotional distress and a second for
assault and battery. As to the second cause of action, the
complaint alleged that on May 6, 2001, Fischer slapped her in the
face and ear, causing permanent injury, necessitating continuing
medical treatment and rendering her unable to perform her usual
and customary activities. Fischer answered, raising several
affirmative defenses, including res judicata and various theories
of estoppel.
Fischer moved to dismiss the complaint pursuant to CPLR 3211 (a)(5) and Chen cross-moved to dismiss several of Fischer's
affirmative defenses. Supreme Court granted Fischer's motion and
denied Chen's cross motion. The court found that the allegations
in Chen's personal injury action were "virtually identical" to
those in her counterclaim for divorce and arose out of the same
transaction or series of transactions. Thus, the court
determined that the tort action was barred by res judicata.
The Appellate Division affirmed, agreeing that the
action was barred because the tort claim could have been
litigated with the divorce action and Chen did not expressly
reserve the right to bring that claim when she withdrew her fault
allegations for purposes of the stipulation. The court extended
the rule we set forth in Boronow v Boronow (, 71 NY2d 284, 290
[1988]) -- that issues relating to marital property be decided
with the matrimonial action -- to interspousal tort actions.
Specifically, the court found that "[s]ocietal needs, logic, and
the desirability of bringing spousal litigation to finality now
compel us to . . . hold that an interspousal tort action seeking
to recover damages for personal injuries commenced subsequent to,
and separate from, an action for divorce is . . . barred by claim
preclusion" (12 AD3d 43, 47 [2004]).[2]
We granted Chen leave to
appeal and now reverse.
Typically, principles of res judicata require that
"once a claim is brought to a final conclusion, all other claims
arising out of the same transaction or series of transactions are
barred, even if based upon different theories or if seeking a
different remedy" ( O'Brien v City of Syracuse, , 54 NY2d 353, 357
[1981]). In the context of a matrimonial action, this Court has
recognized that a final judgment of divorce settles the parties'
rights pertaining not only to those issues that were actually
litigated, but also to those that could have been litigated
( Rainbow v Swisher, , 72 NY2d 106, 110 [1988]; see also O'Connell v
Corcoran, 1 NY3d 179, 184-185 [2003]). The primary purposes of
res judicata are grounded in public policy concerns and are
intended to ensure finality, prevent vexatious litigation and
promote judicial economy ( see Matter of Hodes v Axelrod, , 70 NY2d 364, 372 [1987]; Matter of Reilly v Reid, , 45 NY2d 24, 28 1978]).
However, unfairness may result if the doctrine is applied too
harshly; thus "[i]n properly seeking to deny a litigant two 'days
in court', courts must be careful not to deprive [the litigant]
of one" ( Reilly, 45 NY2d at 28).
It is not always clear whether particular claims are
part of the same transaction for res judicata purposes. A
"pragmatic test" has been applied to make this determination --
analyzing "whether the facts are related in time, space, origin,
or motivation, whether they form a convenient trial unit, and
whether their treatment as a unit conforms to the parties'
expectations or business understanding or usage" (Restatement
[Second] of Judgments § 24 [2]; see Smith v Russell Sage College,
, 54 NY2d 185, 192-193 [1981]; Reilly, 45 NY2d at 29).[3]
Applying these principles, it is apparent that personal
injury tort actions and divorce actions do not constitute a
convenient trial unit. The purposes behind the two are quite
different. They seek different types of relief and require
different types of proof. Moreover, a personal injury action is
usually tried by a jury, in contrast to a matrimonial action,
which is typically decided by a judge when the issue of fault is
not contested. Further, personal injury attorneys are
compensated by contingency fee, whereas matrimonial attorneys are
prohibited from entering into fee arrangements that are
contingent upon the granting of a divorce or a particular
property settlement or distributive award ( see Code of
Professional Responsibility DR 2-106 [c][2][i] [22 NYCRR 1200.11
(c)(2)(i)]).
This case is distinguishable from the situation
presented by Boronow. There, we noted that title issues are
"intertwined" with the dissolution of the marriage relationship
and could usually "be fairly and efficiently resolved" along with
the matrimonial action ( see Boronow, 71 NY2d at 290). Typically,
however, a personal injury action is not sufficiently intertwined
with the dissolution of the marriage relationship as to allow for
its efficient resolution. Thus, the interspousal tort action
does not form a convenient trial unit with the divorce
proceeding, and it would not be within the parties' reasonable
expectations that the two would be tried together.
Significant policy considerations also support this
conclusion. To require joinder of interspousal personal injury
claims with the matrimonial action would complicate and prolong
the divorce proceeding. This would be contrary to the goal of
expediting these proceedings and minimizing the emotional damage
to the parties and their families. Delaying resolution of vital
matters such as child support and custody or the distribution of
assets to await the outcome of a personal injury action could
result in extreme hardship and injustice to the families
involved, especially for victims of domestic violence. In
addition, parties should be encouraged to stipulate to, rather
than litigate, the issue of fault ( see Blickstein v Blickstein,
99 AD2d 287, 293-294 [2d Dept 1984]; see also O'Brien v O'Brien,
, 66 NY2d 576, 589-590 [1985] [noting that fault should only be
considered "in egregious cases" for purposes of equitable
distribution, in part, "because fault will usually be difficult
to assign and because introduction of the issue may involve the
courts in time-consuming procedural maneuvers relating to
collateral issues"]).
Unlike the Appellate Division, we decline to adopt the
reasoning of the New Jersey Supreme Court in Tevis v Tevis (79 NJ
422, 400 A2d 1189 [1979]). In Tevis, the Court held that under
that State's "single controversy" rule, the interspousal personal
injury claim should have been brought with the matrimonial action
so that the issues between the parties could be decided in one
proceeding in order to prevent protracted litigation ( see Tevis,
79 NJ at 434, 400 A2d at 1196). However, that view is decidedly
the minority view and the New Jersey Supreme Court has recently
acknowledged the potential drawbacks to litigating an
interspousal tort claim prior to the divorce proceeding -- noting
that it "may have a negative psychological impact on parties by
prolonging the uncertainty of their marital status" ( Brennan v
Orban, 145 NJ 282, 303, 678 A2d 667, 678 [1996]). Indeed, other
states to address the issue have reached the conclusion we reach
today, emphasizing the fundamental differences between the two
types of actions and noting the complications that could result
from the rigid application of res judicata principles ( see
Delahunty v Massachusetts Mut. Life Ins. Co., 236 Conn 582, 590-
594, 674 A2d 1290, 1295-1297 [1996]; Henriksen v Cameron, 622 A2d
1135, 1141-1142 [Me 1993]; Heacock v Heacock, 402 Mass 21, 23-24,
520 NE2d 151, 153 [1988]).
Here, although the personal injury claim could have
been litigated with the matrimonial action -- as the facts arose
from the same transaction or series of events -- it was not, as
all of Chen's fault allegations, save one, were withdrawn by
stipulation for the salutary purpose of expediting the
matrimonial action. She is therefore not precluded from
litigating that claim in a separate action.
Parties are free, of course, to join their interspousal
tort claims with the matrimonial action ( see CPLR 601 [a]) and
the trial court retains discretion to sever the claims in the
interest of convenience, if necessary ( see CPLR 603 ). If a
separate interspousal tort action is contemplated, however, or
has been commenced, the better practice would be to include a
reservation of rights in the judgment of divorce. Finally, if
fault allegations are actually litigated in a matrimonial action,
res judicata or some form of issue preclusion would bar a
subsequent action in tort based on the same allegations.
Accordingly, the order of the Appellate Division should
be reversed, with costs, and the case remitted to Supreme Court
for further proceedings in accordance with this Opinion.