Nucsafe, Inc. Et Al. v. Stephen Farber Et Al.

This is an appeal from a grant of summary judgment wherein the trial court found that the plaintiff corporations were barred, based on a prior lawsuit between the same parties, from litigating their claim that a promissory note had been procured by fraudulent inducement. The defendants in the instant case, who were the plaintiffs in the prior action, had successfully moved for summary judgment in that prior action concerning the enforcement of a promissory note against the corporations, which were the defendants in the prior action. In that action, the trial court found that the corporations had waived their fraud defense b cause they had neither pled fraud as an affirmative defense in their answer nor requested permission to amend their answer. The trial court ultimately held that the promissory note was enforceable and entered judgment against the corporations. On appeal in the prior action, this Court affirmed the trial court’s judgment, including its ruling that the defense of fraud had been waived. In the present action, the corporations—now plaintiffs—sought to repudiate the same promissory note, alleging that it was induced by fraud. The trial court granted the defendants’ motion for summary judgment based on the doctrines of res judicata and collateral estoppel, as well as expiration of the applicable statute of limitations. The plaintiff corporations have appealed. Discerning no reversible error, we affirm the trial court’s judgment.