Opinion ID: 2194999
Heading Depth: 1
Heading Rank: 1

Heading: A. Flawed Analysis

Text: The dispositive issue in this appeal is whether an employer may assert the involuntary dismissal of its employee, obtained on statute of limitations grounds, as a basis for its own dismissal by virtue of the doctrine of res judicata. That doctrine provides that a final judgment on the merits bars a subsequent action between the same parties or their privies on the same cause of action. People ex rel. Burris v. Progressive Land Developers, Inc., 151 Ill.2d 285, 294, 176 Ill. Dec. 874, 602 N.E.2d 820 (1992). Three requirements must be met for res judicata to apply: (1) there must be a final judgment on the merits rendered by a court of competent jurisdiction; (2) there must be an identity of causes of action (or defenses); and (3) there must be an identity of parties or their privies. Progressive Land, 151 Ill.2d at 294, 176 Ill.Dec. 874, 602 N.E.2d 820. In this case, the majority begins its analysis by noting that the only element of res judicata in serious dispute is the first element concerning whether the granting of the involuntary dismissal in favor of [the employee] constitutes a final judgment on the merits barring the remaining claim against A & B Freight. 175 Ill.2d at 180, 222 Ill.Dec. at 82, 676 N.E.2d at 1286. As to the final two elements, the majority concludes: `The second element of res judicata is clearly present since [plaintiff] is suing both A & B Freight and [its employee] for the same injuries arising out of the same accident. Furthermore, [plaintiff's] claim against A & B Freight is based on a theory of vicarious liability and under such a theory the employer and employee are considered to be one and the same defendant.' 175 Ill.2d at 180, 222 Ill.Dec. at 82, 676 N.E.2d at 1286, quoting Downing v. Chicago Transit Authority, 162 Ill.2d 70, 74, 204 Ill.Dec. 755, 642 N.E.2d 456 (1994). Despite this early conclusion that the same claim and same party requirements have been satisfied, the majority later insists that the matter before us involves a separate claim against a different defendant. (Emphasis added.) 175 Ill.2d at 184, 222 Ill.Dec. at 83, 676 N.E.2d 1287. The majority then uses this fact, i.e., the existence of a different defendant, to ultimately conclude that the first element of res judicata has not been satisfied. See 175 Ill.2d at 186, 222 Ill.Dec. at 84, 676 N.E.2d at 1288 (where separate defendants are involved, we hold that    only those types of involuntary dismissals that serve the policy behind Supreme Court Rule 273 should be treated as adjudications on the merits). The majority supports this novel theory by further suggesting that Supreme Court Rule 273, which provides that all involuntary dismissals operate as adjudications on the merits unless the dismissal was for lack of jurisdiction, improper venue, or failure to join an indispensable party, should be interpreted differently depending upon the party which invokes the rule. According to the majority, [w]here a different defendant is involved, as in the present case, Rule 273 cannot be applied mechanically   . (Emphasis added.) 175 Ill.2d at 184, 222 Ill.Dec. at 83, 676 N.E.2d at 1287. I do not believe that Rule 273 should be interpreted differently merely because a different defendant is involved. On the contrary, whether a judgment is or is not an adjudication on the merits under Rule 273 does not depend upon whether there is an identity of parties, as in the case of res judicata. Rather, it depends solely on whether the dismissal at issue falls within one of the three exceptions specified in the rule. See Towns v. Yellow Cab Co., 73 Ill.2d 113, 122, 22 Ill.Dec. 519, 382 N.E.2d 1217 (1978) (holding that involuntary dismissals for reasons other than those specified by Rule 273 are adjudications on the merits). Where, as here, none of the three exceptions apply, the dismissal operates as an adjudication on the merits. Rein v. David A. Noyes & Co., 172 Ill.2d 325, 216 Ill.Dec. 642, 665 N.E.2d 1199 (1996). In Rein, we held that a dismissal of an action based on the running of a statute of limitations constituted an adjudication on the merits by virtue of Rule 273. Rein, 172 Ill.2d at 335-36, 216 Ill.Dec. 642, 665 N.E.2d 1199. In that case, plaintiffs filed an eight-count complaint against a securities dealer and its agents, seeking, inter alia, to rescind an agreement to purchase certain bonds. The circuit court dismissed the complaint pursuant to section 2-619(a)(5) of the Code of Civil Procedure (735 ILCS 5/2-619(a)(5) (West 1994)). The court held that the action was barred by the applicable statute of limitations. After an unsuccessful appeal, plaintiffs returned to the circuit court and attempted to replead the rescission counts. The court again dismissed the action, this time ruling that the claims were barred by the doctrine of res judicata. We affirmed that ruling on appeal, noting that the prior dismissal on statute of limitations grounds served as an adjudication on the merits. Justice Miller, writing for a unanimous court, held as follows: Supreme Court Rule 273 provides that, `[u]nless the order of dismissal or a statute of this State otherwise specifies, an involuntary dismissal of an action, other than a dismissal for lack of jurisdiction, for improper venue, or for failure to join an indispensable party, operates as an adjudication upon the merits.' 134 Ill.2d R. 273. As this court has previously stated, Rule 273 applies only to an involuntary dismissal of an action, such as that which occurs when a motion to dismiss under section 2-615 or 2-619 of the Code is granted. Downing, 162 Ill.2d at 74-75 [204 Ill.Dec. 755, 642 N.E.2d 456]. Therefore, under Rule 273, the trial judge's decision to grant defendant's motion to dismiss the rescission counts in Rein [v. Noyes & Co.] I [230 Ill.App.3d 12, 172 Ill.Dec. 204, 595 N.E.2d 565] based on the applicable statute of limitations is a final adjudication on the merits and operates as a final judgment on the merits for purposes of res judicata. See Downing, 162 Ill.2d at 74-75 [204 Ill. Dec. 755, 642 N.E.2d 456]. Rein, 172 Ill.2d at 335-36, 216 Ill.Dec. 642, 665 N.E.2d 1199. Our holding in Rein is wholly consistent with the plain language of Rule 273. That rule specifies that only involuntary dismissals based on (i) lack of jurisdiction, (ii) improper venue, or (iii) failure to join a necessary party shall not operate as adjudications on the merits, unless the order of dismissal or a statute states otherwise. 134 Ill.2d R. 273. The rule does not exempt involuntary dismissals based on the running of the statute of limitations. Such dismissals, therefore, are adjudications on the merits. Towns v. Yellow Cab Co., 73 Ill.2d 113, 122, 22 Ill.Dec. 519, 382 N.E.2d 1217 (1978). That was the conclusion reached by this court in Rein, and that has been the unanimous conclusion reached by our appellate court. Greenfield v. Ray Stamm, Inc., 242 Ill. App.3d 320, 327, 182 Ill.Dec. 694, 610 N.E.2d 118 (1993) (holding that dismissal based on statute of limitations constitutes an adjudication on the merits); Sankey Brothers, Inc. v. Guilliams, 152 Ill.App.3d 393, 398, 105 Ill. Dec. 434, 504 N.E.2d 534 (1987); Muscare v. Voltz, 107 Ill.App.3d 841, 843, 63 Ill.Dec. 689, 438 N.E.2d 620 (1982). Consequently, there can be no dispute over whether the type of dismissal involved in this case, i.e., a dismissal for failure to file a complaint within the applicable limitations period, constitutes an adjudication on the merits pursuant to Rule 273. Notwithstanding the above, the majority asserts that [u]nlike [ Rein], the matter before us involves a separate claim against a different defendant. 175 Ill.2d at 184, 222 Ill.Dec. at 83, 676 N.E.2d at 1287. The majority believes that this distinction is critical because [w]here a different defendant is involved, as in the present case, Rule 273 cannot be applied mechanically, because doing so would yield absurd and unjust results. 175 Ill.2d at 184, 222 Ill.Dec. at 83, 676 N.E.2d at 1287. Thus, from the majority's point of view, the existence of a different defendant in this case is relevant because it purportedly affects the way in which we should interpret Rule 273. I question the validity of the majority's argument on this point. Although I agree with the majority that the existence of a separate claim and a different defendant distinguishes the instant case from Rein, I do not think that this distinction is relevant in terms of how we should construe Rule 273. In my view, this distinction simply has nothing to do with that rule or its application. Rather, the existence of a separate claim and a different defendant is relevant in determining whether the final two elements of res judicata have been satisfied. After all, it is the doctrine of res judicata, and not Rule 273, which speaks in terms of separate claims and different defendants. Indeed, as noted above, three requirements must be satisfied before courts will apply the doctrine of res judicata: there must be a final judgment on the merits, an identity of causes of actions, and an identity of parties or their privies. People ex rel. Burris v. Progressive Land Developers, Inc., 151 Ill.2d 285, 294, 176 Ill.Dec. 874, 602 N.E.2d 820 (1992). In contrast, the applicability of Rule 273 does not turn on whether separate claims or different parties exist. A review of the plain language of that rule reveals that the sole concern of Rule 273 is the determination of whether an order of dismissal will be treated as an adjudication on the merits. Nothing in the language of the rule supports the notion that the existence of different defendants should result in a different interpretation. Thus, there is no basis for the majority's contention that our analysis of Rule 273 should vary, or that the rule should be less than mechanically applied, simply because a separate claim or a different defendant is involved. Accordingly, to the extent that my colleagues view Rein as factually distinguishable from the instant case, I agree. I do not, however, believe that Rein is distinguishable in terms of construing Rule 273, as the majority erroneously posits. Unlike the majority, I think that Rein is distinguishable only in the context of the doctrine of res judicata. In Rein, we barred any further litigation between the parties because all three elements of res judicata were satisfied. In this case, not all of the elements of res judicata are present. As the majority repeatedly points out, the case at bar involves a separate claim and a different defendant; therefore, the doctrine of res judicata does not apply.