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BUECHEL v. BAIN

97 N.Y.2d 295 (2001)

766 N.E.2d 914

740 N.Y.S.2d 252

FREDERICK F. BUECHEL et al., Individually and as Trustees of Trusts Entitled BIOMEDICAL ENGINEERING TRUST, Respondents, v. JOHN N. BAIN et al., Appellants, et al., Defendants.

Court of Appeals of the State of New York.

Decided December 20, 2001.

Attorney(s) appearing for the Case

Simpson Thacher & Bartlett, New York City (Robert F. Cusumano, Roy L. Reardon, David E. Vann, Jr., Bryce L. Friedman and George S. Wang of counsel), and Wilson, Elser, Moskowitz, Edelman & Dicker, L. L. P. (Thomas W. Hyland and Richard E. Lerner of counsel), for appellants.

Solomon, Zauderer, Ellenhorn, Frischer & Sharp, New York City (David N. Ellenhorn and Emily Stern of counsel), for respondents.

Chief Judge KAYE and Judges CIPARICK, WESLEY, ROSENBLATT and GRAFFEO concur with Judge SMITH; Judge LEVINE dissents and votes to reverse in a separate opinion.

OPINION OF THE COURT

SMITH, J.

The primary issue before this Court is whether parties should be precluded from relitigating the validity of fee arrangements determined to be illegal in an earlier action, when they were in privity with the person against whom the issue was decided. We conclude that collateral estoppel bars relitigation.

Plaintiffs, Frederick F. Buechel, an orthopedic doctor and Michael...

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