First Midwest Bank v. Cobo

This case present question as to whether trial court properly denied defendants’ motion to dismiss plaintiff-bank’s action alleging that defendants breached promissory note, where: (1) plaintiff’s predecessor in interest had filed foreclosure action against defendants based on defendants’ alleged default on said note that resulted in voluntary dismissal of said action; (2) plaintiff filed second action for breach of same promissory note that was also voluntarily dismissed; and (3) instant action represented third cause of action that alleged breach of same promissory note, as well as unjust enrichment claim. Appellate Court, in reversing trial court and directing dismissal of plaintiff’s action, found that for purposes of res judicata analysis, same set of operative facts gave rise to instant foreclosure and breach of promissory note causes of action. As such, instant lawsuit constituted impermissible second re-filing of original foreclosure action, and that trial court could not otherwise consider plaintiff’s unjust enrichment claim. In its petition for leave to appeal, plaintiff argued that case law is in flux as to whether documents signed as part of loan transaction all arise out of same group of operative facts.