Indian Harbor Ins. Co. v. MMT Demolition, Inc.

2014 IL App (1st) 131734 (Ill. App., 2014)

Words & Phrases

Subrogation: In General

Trial Judge

Hon. Kathy Flanagan

Appellate Judge

Presiding Justice Gordon

Holding

Adverse decision in earlier small claims suit by building tenants against demolition company was not res judicata against demolition company in insurer's subrogation action because insurer and insured building owner’s tenants were not in privity.

Fact Summary

Res judicata did not bar plaintiff insurer from pursuing its subrogation claim against defendant demolition company for the damages suffered by a building plaintiff insured as a result of defendant’s alleged negligence in demolishing a neighboring building, notwithstanding the fact that judgment was entered for defendant in an earlier small claims action brought by tenants of the damaged building, since defendant failed to establish the identity of the two causes of action or that the tenants were in privity with plaintiff; therefore, the trial court’s entry of summary judgment for defendant on the ground that res judicata barred plaintiff’s action was reversed.

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