Nationwide Mutual Ins. Co. v. Srachta

Plaintiff brought a declaratory judgment action against its insureds asking the court to declare that it did not have a duty to defend or indemnify the defendant homeowner association against claims made by homeowner association residents in a derivative suit. The trial court granted plaintiff’s motion for judgment on the pleadings finding that res judicata and collateral estoppel barred defendants from seeking defense in the derivative suit where a judgment rendered in a prior case determined that plaintiff had no duty to defend. The appellate court agreed with the reasoning of the trial court and affirmed. (HOLDRIDGE and ALBRECHT, concurring)