WD Music Products, Inc. v. Muller

12-0362-cv (L) WD Music v. Muller UNITED STATES COURT OF APPEALS FOR THE SECOND CIRCUIT SUMMARY ORDER RULINGS BY SUMMARY ORDER DO NOT HAVE PRECEDENTIAL EFFECT. CITATION TO A SUMMARY ORDER FILED ON OR AFTER JANUARY 1, 2007, IS PERMITTED AND IS GOVERNED BY FEDERAL RULE OF APPELLATE PROCEDURE 32.1 AND THIS COURT’S LOCAL RULE 32.1.1. WHEN CITING A SUMMARY ORDER IN A DOCUMENT FILED WITH THIS COURT, A PARTY MUST CITE EITHER THE FEDERAL APPENDIX OR AN ELECTRONIC DATABASE (WITH THE NOTATION “SUMMARY ORDER”). A PARTY CITING A SUMMARY ORDER MUST SERVE A COPY OF IT ON ANY PARTY NOT REPRESENTED BY COUNSEL. 1 At a stated term of the United States Court of Appeals 2 for the Second Circuit, held at the Daniel Patrick Moynihan 3 United States Courthouse, 500 Pearl Street, in the City of 4 New York, on the 20th day of December, two thousand twelve. 5 6 PRESENT: RICHARD C. WESLEY, 7 PETER W. HALL, 8 Circuit Judges. 9 RICHARD W. GOLDBERG, 10 Judge.* 11 12 13 14 WD MUSIC PRODUCTS, INC. 15 16 Plaintiff-Appellant-Cross-Appellee, 17 18 -v.- Nos. 12-0362-cv (Lead) 19 12-519-cv (XAP) 20 ANTHONY MULLER and DDDDC, INC., 21 22 Defendants-Appellees-Cross-Appellants. 23 24 25 26 FOR APPELLANT: Randall S.D. Jacobs, PLLC, New York, NY. 27 28 FOR APPELLEES: Michael A. Freeman, Greenberg Freeman 29 LLP, New York, NY. 30 * The Honorable Richard W. Goldberg, of the United States Court of International Trade, sitting by designation. 1 Appeal from the United States District Court for the 2 Eastern District of New York (Amon, C.J.). 3 4 UPON DUE CONSIDERATION, IT IS HEREBY ORDERED, ADJUDGED 5 AND DECREED that the order be AFFIRMED. 6 WD Music Products, Inc. appeals from a December 29, 7 2011 judgment entered by the United States District Court 8 for the Eastern District of New York (Amon, C.J.) following 9 the court’s grant of defendants’ motion to dismiss the 10 complaint under the doctrine of res judicata. WD Music 11 Prods., Inc. v. Muller, No. 11 CV 1588, 2011 WL 6838272 12 (E.D.N.Y. Dec. 29, 2011). Defendants Anthony Muller and 13 DDDDC, Inc. cross-appeal from the court’s accompanying 14 denial of their motion for sanctions under Federal Rule of 15 Civil Procedure 11 and 28 U.S.C. § 1927. We assume the 16 parties’ familiarity with the facts and procedural history 17 of the case. 18 We affirm the dismissal of WD Music’s complaint for 19 substantially the same reasons stated by the district court. 20 In sum, WD Music’s second state-court action was brought to 21 a final conclusion by the New York State Supreme Court’s 22 dismissal on res judicata grounds. “This decision of the 23 New York State Supreme Court itself creates a preclusive 2 1 effect.” See Hameed v. Aldana, 296 Fed. Appx. 154, 155 (2d 2 Cir. 2008). New York law provides that “once a claim is 3 brought to a final conclusion, all other claims arising out 4 of the same transaction or series of transactions are 5 barred, even if based upon different theories or if seeking 6 a different remedy.” See id. (quoting O’Brien v. City of 7 Syracuse, 54 N.Y.2d 353, 357 (1981) (internal quotations 8 omitted)). If WD Music believed that either of the state 9 court’s decisions was incorrect, its remedy was to appeal. 10 The district court did not abuse its discretion in 11 denying defendants’ motion for sanctions. See Perez v. 12 Posse Comitatus, 373 F.3d 321, 325 (2d Cir. 2004) (“Even if 13 the district court concludes that the assertion of a given 14 claim violates Rule 11, . . . the decision whether or not to 15 impose sanctions is a matter for the court’s discretion.”); 16 In re 60 E. 80th St. Equities, Inc., 218 F.3d 109, 115 (2d 17 Cir. 2000) (“Sanctions [under 28 U.S.C. § 1927] may be 18 imposed . . . only when there is a finding of conduct 19 constituting or akin to bad faith.”) (internal quotations 20 omitted). 21 22 3 1 We have considered the parties’ remaining arguments and 2 find them to be without merit. For the reasons stated 3 above, the judgment of the district court is AFFIRMED. 4 5 FOR THE COURT: 6 Catherine O’Hagan Wolfe, Clerk 7 8 4