Kahana Feld Prevails on Appeal in Bronx County Supreme Court Labor Law Procedural Ruling

Kahana Feld partner Jack Watkins, attorney Serena Mott, and attorney pending admission Matthew Lai secured a favorable appellate ruling in the First Department, successfully reinstating a third-party complaint that had been dismissed following a default judgment in a Labor Law action. 

The appeal presented an important procedural issue: whether a default judgment constitutes a determination on the merits for purposes of precluding third-party claims. Kahana Feld argued that it does not, and the First Department agreed, reversing the lower court’s decision and restoring the client’s contractual indemnification claims against the third-party defendant. 

The decision provides valuable clarification that a default is not a determination on the merits and does not have preclusive effect vis-à-vis third parties.