67-25 Dartmouth St. Corp v. Syllman

67-25 Dartmouth St. Corp v. Syllman, 29 AD3d 888, 817 N.Y.S.2d 299 (2d Dept 2006), involved the res judicata effect of a housing cooperative's failure to assert a counterclaim for attorneys fees in an action that a shareholder had commenced against it. In affirming the Supreme Court's order granting summary judgment dismissing the complaint in the cooperative's subsequent action seeking attorneys fees, the Second Department held that although there are no compulsory counterclaims, that "does not . . . permit a party to remain silent in the first action and then bring a second one on the basis of a preexisting claim for relief that would impair the rights or interests established in the first action." (29 AD3d at 889-890.)