ARCHBROOK LAGUNA, LLC v. CHARLES L. MARSH A-5254-08T3 06-17-10
Plaintiff commenced this action, alleging fraud and the breach of defendant's fiduciary duties as a corporate officer. At the time this suit was filed, defendant's action against
plaintiff in Georgia was still pending. And, once this action was filed, plaintiff voluntarily dismissed its counterclaim against defendant in Georgia. After a trial and the entry of final judgment in Georgia, defendant successfully moved to dismiss this action on the basis of the entire controversy doctrine.
In affirming, the court determined, among other things, that the entire controversy doctrine does not only apply when "successive suits" are filed but may be applied when the second suit is filed while the first is still pending. The court also held that application of the entire controversy doctrine in this circumstance required a dismissal with prejudice, not a dismissal without prejudice, as plaintiff argued. Lastly, the court held that defendant should have sought dismissal more expeditiously but did not find the delay so inequitable as to require denial of the motion to dismiss.
