In a consolidated appeal of a case involving multiple lawsuits seeking an accounting and a judicial dissolution of a corporation as well as claims of breach of fiduciary duty, legal malpractice, and aiding and abetting a breach of fiduciary duty, the appellate court considered whether a dismissal with prejudice on statute of limitations grounds has a res judicata effect on claims in another lawsuit that were timely filed. The appellate court answered the question in the negative, concluding that a dismissal with prejudice on statute of limitations grounds generally does not have res judicata effect on claims in another lawsuit that were timely filed because the causes of action would ordinarily not be identical based on the factual differences in the dates the lawsuits were filed, with one being timely and the other untimely. The court also explain that the cases in this matter were not identical in time and origin and under a “pragmatic” application of the transactional test and principles of fundamental fairness, the doctrine of res judicata did not bar the timely-filed claims. (DOHERTY and HARRIS, concurring)
Illinois Appellate Court
Civil Court
Statute of Limitations