The doctrine of res judicata did not bar plaintiff's right to sue for return of its $11,349 payment in the instant case, where it had failed to include a counterclaim for money damages in a prior lawsuit involving the same transaction, an exchange of two automobiles. New York's permissive counterclaim rule allows counterclaims to be raised through separate litigation even if interposed as a defense in prior litigation, as long as a party defendant does not remain silent in...
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