UPON DUE CONSIDERATION, IT IS HEREBY ORDERED, ADJUDGED, AND DECREED that the judgment of the District Court is AFFIRMED.
Sackets Harbor Leasing Company ("SHLC") sued the defendants, the Village of Sackets Harbor (the "Village") and several Village officials, pursuant to 42 U.S.C. § 1983, claiming that the defendants had violated its right to due process by interfering with its wharf right along the eastern boundary of its waterfront property. SHLC appeals from a judgment of the United States District Court for the Northern District of New York (McCurn,
In July 2000, SHLC purchased a parcel of real property on the shore of the Black River Bay in the Village, with the intention of developing a hotel and conference center. SHLC argues that when it purchased this parcel, it also acquired a "wharf right" along a 20-foot strip adjoining the parcel on its eastern boundary. In 2002, SHLC completed construction of a renovated bulkhead and a series of floating docks along the eastern boundary of its property. Shortly thereafter, the Village sued SHLC in New York State Supreme Court, alleging that the project exceeded the eastern boundaries of SHLC's property, and that SHLC had erected the floating docks in violation of the Village's Waterfront Management Law ("WML"). SHLC asserted a counterclaim pursuant to 42 U.S.C. § 1983, claiming that the Village had violated SHLC's due process rights by seeking to encroach on its property and by "seeking to rescind previously issued permits to construct the project."
In April 2004, the state court granted summary judgment to the Village on the WML cause of action and granted a permanent injunction to the Village barring SHLC from maintaining the disputed docks. Following a bench trial regarding the location of the boundary between SHLC and Village properties, which resulted in a verdict in the Village's favor, the state court executed a judgment adopting the Village's position regarding the property line and granting the Village "sole possession of the disputed property on [the Village's] side of the above-referenced boundary." In separate opinions, the Appellate Division, Fourth Department affirmed the Supreme Court's adjudication of both the location of the property line and the WML issue.
The Village then moved for summary judgment on SHLC's due process counterclaim, and SHLC cross-moved to file a second amended answer asserting, for the first time, a separate due process counterclaim based on a violation of its "wharf right" in the disputed area. By opinion dated March 7, 2007, the New York Supreme Court dismissed the original counterclaim on the grounds that "there has been a Trial and an Appellate Division decision, finding that action by the Plaintiff did not equate to granting a vested right to the Defendant." It also denied SHLC's cross-motion to file a second amended answer, noting that the proposed amendment appeared to be futile.
SHLC then filed this action in federal court, alleging that it was entitled to proceed with the bulkhead and dock project pursuant to its "wharf right" in the disputed area. Defendants moved for summary judgment, which the District Court granted on the ground that SHLC's rights in the disputed area had already been litigated in the state court action and could not be relitigated.
We review an award of summary judgment
"[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."
SHLC's complaint alleging a violation of its "wharf right" arises from the same "factual grouping, transaction, or series of transactions" as the state court action brought by the Village.
SHLC argues that its action should be permitted to proceed because, when it sought to file a second amended answer in the Supreme Court asserting its "wharf right" theory, the state court denied leave to amend and suggested that the "wharf right" claim, if viable, should be asserted in a separate action. We are not persuaded. The state court made that suggestion only in the course of explaining that, for purposes of the state action, SHLC had failed to demonstrate that this claim was viable and justified leave to file a second amended answer. A court adjudicating a matter does not determine the res judicata effect of its own judgment.
We have considered SHLC's remaining arguments on appeal and conclude that they are without merit. The judgment of the District Court is AFFIRMED.