New York, N.Y. (November 20, 2024) - In Roc-Le Triomphe Associates, LLC v. DeSouza, 2024 NY Slip Op 05654 (1st Dep't 2024), Associate Dean Pillarella, a member of the Appellate Practice, successfully invoked the party finality doctrine to obtain the dismissal of an appeal for the firm's commercial guarantor clients.
The action concerned rent allegedly due and owing under a commercial lease by the lease's tenant and guarantors. Pursuant to a 2022 order, the guarantors were awarded summary judgment and dismissal of all claims against them, with the landlord's claims against the tenant left intact. After the decision and order was served with notice of entry by the prevailing party, the landlord did not file a notice of appeal from the order but, instead, filed a notice of appeal from a later judgment months after the time to appeal the order had expired.
In response to the landlord's appeal, predicated upon a purported change in the law, Dean argued that the so-called "party finality" doctrine rendered the order final as to the guarantors and thus, pursuant to CPLR 5501(a)(1), unreviewable on appeal from the later judgment, absent a timely appeal having been taken from the order. As Dean discussed in a recent New York Law Journal article, the doctrine provides that "an order or judgment that disposes of all claims ... involving a party is final and appealable ... as to that party, even though other claims ... that involve other parties remain pending." Thus, "in a case involving multiple defendants, an order dismissing all claims as to one defendant is final as to that defendant."
While the party finality doctrine is typically invoked in New York Court of Appeals cases for jurisdictional purposes, in an apparent case of first impression, the First Department agreed with Dean's position that the doctrine also should apply at the Supreme Court and Appellate Division levels, holding: "Plaintiff's appeal of the judgment does not bring up for review the motion court's prior order, granting summary judgment for [the guarantor] defendants ..., as it was a final order that dismissed all claims asserted against them as guarantors of the tenant's lease obligations. *** The subsequent entry of judgment was a mere 'ministerial act' that did not excuse plaintiff's failure to file a notice of appeal of the summary judgment ordered."
The decision is significant for all litigants, as it illustrates that, in multi-party cases (in the First Department), the failure to timely appeal a final order as to one party forever precludes appellate review as to that party. Absent a prompt appeal, the dismissed party can rest easy, without the risk of an appeal from a final judgment creeping up months or years down the line upon the conclusion of the action.
The Appellate Division's decision can be accessed here, and Dean's brief can be read here.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
