Lutkauskas v. Ricker

Multiple residents of school district filed taxpayer derivative action, alleging that funds had been improperly transferred from district's working cash fund in violation of School Code. To seek recovery under Section 20-6 of School Code for unlawful diversion of funds, and for claims of breach of fiduciary duty, a plaintiff must allege that money improperly transferred from Working Cash Fund was used for improper purpose, resulting in actual loss to school district. Res judicata applies to bar subsequent plaintiffs from pursuing claims against accounting firm that performed financial audits of School District, as original and subsequent plaintiffs brought suit in representative capacity on behalf of School District. (GARMAN, THOMAS, KILBRIDE, KARMEIER, BURKE, and THEIS, concurring.)