(Court opinion corrected 4/6/17.) Insurer, in 1986, became insolvent and was placed into liquidation under supervision of circuit court. Liquidator sold insurer's accounts receivable to Plaintiff-appellant. In 2015, Plaintiff sued company to collect sums claimed due under reinsurance contract. Court properly invoked collateral estoppel to deny Plaintiff's motion to compel arbitration. Plaintiff filed suit in federal court against another reinsurer, seeking to compel arbitration and alternatively for breach of contract. District court found (and 7th Circuit affirmed) that Plaintiff had no right to enforce arbitration clause because assignment from liquidator did not convey ability to demand arbitration. Plaintiff, in federal court, resolved the merits of issue of whether Plaintiff was entitled to demand arbitration.(ROCHFORD and DELORT, concurring.)
Illinois Appellate Court
Civil Court
Collateral Estoppel