Stensrud v. Rochester Genesee Reg'l Transp. Auth.

669 F.Supp.3d 186

John R. STENSRUD and Maria B. Stensrud, Plaintiffs, v. ROCHESTER GENESEE REGIONAL TRANSPORTATION AUTHORITY, Defendant.

6:19-CV-06753 EAW

United States District Court, W.D. New York

Signed April 14, 2023

John T. Refermat, Refermat Hurwitz & Daniel PLLC, Rochester, NY, for Plaintiffs.

Kathleen M. Bennett, Stephanie M. Campbell, Suzanne O. Galbato, Suzanne M. Messer, Bond, Schoeneck & King PLLC, Syracuse, NY, for Defendant.

DECISION AND ORDER

ELIZABETH A. WOLFORD, Chief Judge

INTRODUCTION

Plaintiffs John R. Stensrud and Maria B. Stensrud (collectively "Plaintiffs") seek monetary damages pursuant to 42 U.S.C. § 1983 and New York State law based on defendant Rochester Genesee Regional Transportation Authority's ("RGRTA" or "Defendant") taking by eminent domain of property located at 36-38 Chamberlain Street in Rochester, New York (the "Property"). (Dkt. 58). Prior to the commencement of the instant action, Plaintiffs pursued a claim for additional compensation related to this taking in New York State Supreme Court, Monroe County (the "state trial court").

A bench trial was held in the state trial court on June 6, 2022, and on September 26, 2022, the state trial court issued a decision and order awarding Plaintiffs $509,000 as just compensation for the taking of the Property. (Dkt. 98-6). Defendant now moves for summary judgment on the basis of res judicata. (Dkt. 98). For the reasons that follow, Defendant's motion is granted.

BACKGROUND

The following facts are taken from Defendant's statement of material facts not in dispute (Dkt. 98-1), Plaintiffs' response thereto (Dkt. 99-4), and the exhibits submitted by the parties. The Court has noted any relevant factual disputes.

RGRTA is a New York public authority vested with the power of eminent domain by § 1299-ii of the New York State Public Authorities Law. (Dkt. 98-1 at ¶ 1; Dkt 99-4 at ¶ 1). In 2013, RGRTA received final environmental approval and permission to proceed with its Main Street Campus Improvement Project (the "Project"). (Dkt. 98-1 at ¶¶ 2-3; Dkt. 99-4 at ¶¶ 2-3). RGRTA thereafter advised affected property owners about the Project and anticipated property acquisitions. (Dkt. 98-1 at ¶ 4; Dkt. 99-4 at ¶ 4).

Plaintiffs owned the Property in 2013, having purchased it in 2011. (Dkt. 98-1 at ¶¶ 8-9; Dkt. 99-4 at ¶¶ 8-9). The Property was one of the properties identified by RGRTA to be acquired as part of the Project. (Dkt. 98-1 at ¶ 8; Dkt. 99-4 at ¶ 8). Notices regarding RGRTA's intended acquisition of the Property were sent to Plaintiffs in April and May of 2013. (Dkt. 98-1 at ¶¶ 16-17; Dkt. 99-4 at ¶¶ 16-17).

On April 30, 2014, RGRTA received a "review appraisal" of the Property. (Dkt. 98-1 at ¶ 21; Dkt. 99-4 at ¶ 21). It then modified its plans and decided not to acquire the Property, communicating that decision to Mr. Stensrud by letter dated June 2, 2014. (Dkt. 98-1 at ¶¶ 22-23; Dkt. 99-4 at ¶¶ 22-23). However, in 2015, RGRTA reconsidered its decision not to acquire the Property, and determined that it would move forward with the acquisition. (Dkt. 98-1 at ¶ 24; Dkt. 99-4 at ¶ 24). On May 14, 2015, RGRTA met with Mr. Stensrud and informed him that RGRTA had elected to move forward with the acquisition of the Property by eminent domain. (Dkt. 98-1 at ¶ 25; Dkt. 99-4 at ¶ 25). At that time, RGRTA offered Mr. Stensrud $255,000 as compensation for the Property. (Dkt. 98-1 at ¶ 25; Dkt. 99-4 at ¶ 25).

On June 23, 2025, RGRTA commenced proceedings in the state trial court to acquire the Property. (Dkt. 98-1 at ¶ 26; Dkt. 99-4 at ¶ 26). The state trial court granted RGRTA permission to file its acquisition map for the Property by order entered on August 10, 2015, and RGRTA filed said acquisition map on August 13, 2015, thereby becoming the owner of the Property. (Dkt. 98-1 at ¶¶ 27-28; Dkt. 99-4 at ¶¶ 27-28). On or around November 10, 2015, RGRTA paid Plaintiffs compensation in the amount of $292,000, which was the value of the highest appraisal RGRTA had received for the Property at that time. (Dkt. 98-1 at ¶ 30; Dkt. 99-4 at ¶ 30). Plaintiffs take the position that the appraisal RGRTA relied upon was "severely infirm and inadequate, and that RGRTA knew or should have known that." (Dkt. 99-4 at ¶ 30). Plaintiffs filed a claim for additional compensation in the state trial court on December 30, 2015. (Dkt. 98-1 at ¶ 31; Dkt. 99-4 at ¶ 31).

Plaintiffs commenced the instant litigation on October 9, 2019. (Dkt. 1). The operative pleading is the amended complaint filed on September 29, 2021. (Dkt. 58). In connection with this action, RGRTA retained licensed New York State real estate appraiser Ken Gardener to act as an expert witness. (Dkt. 98-1 at ¶ 33; Dkt. 99-4 at ¶ 33). Mr. Gardener appraised the value of the Property as it existed in 2015 as $418,000, and on April 14, 2022, RGRTA paid Plaintiffs an additional $174,800. (Dkt. 98-1 at ¶¶ 33-34; Dkt. 99-4 at ¶¶ 33-34).

A bench trial was held in the state trial court beginning on June 6, 2022. (Dkt. 98-1 at ¶ 39; Dkt. 99-4 at ¶ 39). On September 26, 2022, the state trial court issued a decision and order awarding Plaintiffs $509,000 as just compensation for the taking of the Property, plus all accrued interest at 9% per annum. (Dkt. 98-1 at ¶ 44; Dkt. 99-4 at ¶ 44). A second amended judgment was filed in the state trial court on December 13, 2022, and RGRTA has satisfied the second amended judgment in its entirety. (Dkt. 98-1 at ¶¶ 45-46; Dkt. 99-4 at ¶¶ 45-46). Plaintiffs and RGRTA have appealed from the second amended judgment. (Dkt. 98-3 at ¶ 16).

RGRTA filed the instant motion for summary judgment on February 7, 2023. (Dkt. 98).¹ Plaintiffs filed their opposition on March 3, 2023 (Dkt. 99), and RGRTA filed its reply on March 16, 2023 (Dkt. 100). The Court heard oral argument on April 10, 2023, at which time it reserved decision. (Dkt. 102).

DISCUSSION

The sole issue before the Court at this time is whether Plaintiffs' claims in this action are barred, in whole or in part, as a result of the state trial court's decision and judgment. Federal courts are required "to give the same preclusive effect to state court judgments that those judgments would be given in the courts of the State from which the judgments emerged." Kremer v. Chemical Construction Corp., 456 U.S. 461, 467, 102 S.Ct. 1883, 72 L.Ed.2d 262 (1982) (citing 28 U.S.C. § 1738); see also Malcolm v. Honeoye Falls-Lima Cent. Sch. Dist., 629 F. App'x 87, 88 (2d Cir. 2015) ("It is axiomatic that a federal court must give to a state-court judgment the same preclusive effect as would be given that judgment under the law of the State in which the judgment was rendered." (quotation omitted)). This rule applies with full force in § 1983 actions asserting violations of constitutional rights. See Allen v. McCurry, 449 U.S. 90, 105, 101 S.Ct. 411, 66 L.Ed.2d 308 (1980); see also Leather v. Eyck, 180 F.3d 420, 424 (2d Cir. 1999) ("In a federal § 1983 suit, the same preclusive effect is given to a previous state court proceeding as would be given to that proceeding in the courts of the State in which the judgment was rendered.").

"The term res judicata, which means essentially that the matter in controversy has already been adjudicated, encompasses two significantly different doctrines: claim preclusion and issue preclusion," Marcel Fashions Grp., Inc. v. Lucky Brand Dungarees, Inc., 779 F.3d 102, 107 (2d Cir. 2015). New York recognizes both claim preclusion and issue preclusion (also known as collateral estoppel). Leather, 180 F.3d at 424. "Under the doctrine of res judicata, or claim preclusion, a final judgment on the merits of an action precludes the parties or their privies from relitigating issues that were or could have been raised in that action." Simmons v. Trans Express Inc., 16 F.4th 357, 360 (2d Cir. 2021) (quotation and alteration omitted). "Under New York law, collateral estoppel precludes a party from relitigating in a subsequent action or proceeding an issue clearly raised in a prior action or proceeding and decided against that party whether or not the tribunals or causes of action are the same. New York courts apply collateral estoppel, or issue preclusion, if the issue in the second action is identical to an issue which was raised, necessarily decided and material in the first action, and the plaintiff had a full and fair opportunity to litigate the issue in the earlier action." LaFleur v. Whitman, 300 F.3d 256, 271 (2d Cir. 2002) (quotations, alteration, and citations omitted).

"In New York, res judicata, or claim preclusion, bars successive litigation based upon the same transaction or series of connected transactions if: (i) there is a judgment on the merits rendered by a court of competent jurisdiction, and (ii) the party against whom the doctrine is invoked was a party to the previous action, or in privity with a party who was[.]" People ex rel. Spitzer v. Applied Card Systems, Inc., 11 N.Y.3d 105, 122, 863 N.Y.S.2d 615, 894 N.E.2d 1 (2008) (citations and quotation omitted). "New York employs a transactional approach to claim preclusion, under which the claim preclusion rule extends beyond attempts to relitigate identical claims to all other claims arising out of the same transaction or series of transactions." Simmons, 16 F.4th at 361 (quotation and alterations omitted). In applying the transactional approach, "New York courts analyze whether the claims turn on facts that 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." Id. (quotation omitted). The pendency of an appeal does not deprive a judgment of preclusive effect under New York law. Papapietro v. Clott, No. 22-CV-1318 RPK VMS, 2023 WL 2731687, at *5 (E.D.N.Y. Mar. 31, 2023); see also DiSorbo v. Hoy, 343 F.3d 172, 183 (2d Cir. 2003).

In this case, Plaintiffs' claim decided by the state trial court was for direct and...