Andrews v. Gonzalez

2014 IL App (1st) 140342
CourtAppellate Court of Illinois
DecidedOctober 3, 2014
Docket1-14-0342
StatusUnpublished
Cited by1 cases

This text of 2014 IL App (1st) 140342 (Andrews v. Gonzalez) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Andrews v. Gonzalez, 2014 IL App (1st) 140342 (Ill. Ct. App. 2014).

Opinion

2014 IL App (1st) 140342

SECOND DIVISION September 30, 2014

No. 1-14-0342

WILLIAM T. ANDREWS, ) ) Appeal from the Plaintiff-Appellant, ) Circuit Court of ) Cook County. v. ) ) DAGOBERTO GONZALEZ, as Surviving Partner of ) G and G Cement Contractors, an Illinois Partnership ) No. 13 L 8116 ) Defendant-Appellee ) ) Honorable (Century National Insurance Company, ) Kathy M. Flanagan, ) Judge Presiding. Defendant). )

JUSTICE LIU delivered the judgment of the court, with opinion. Justices Neville and Pierce concurred in the judgment and opinion.

OPINION

¶1 Plaintiff, William T. Andrews, filed suit against defendant, Dagoberto Gonzalez

(Dagoberto), to recover an outstanding judgment awarded in a personal injury lawsuit against

G & G Cement Contractors (G&G), a partnership of which Dagoberto was the sole surviving

partner. The circuit court granted Dagoberto's motion to dismiss pursuant to section 2-619(a)(4)

of the Code of Civil Procedure (Code) (735 ILCS 5/2-619(a)(4) (West 2012)), finding that

plaintiff's claim was barred by res judicata because Dagoberto was a named defendant in the

prior underlying action and was found not liable for negligence. On appeal, plaintiff contends

that the circuit court erred in dismissing his claim against Dagoberto because various provisions

of the Uniform Partnership Act (1997) (Act) (805 ILCS 206/100 et seq. (West 2012)) and

sections 2-410 and 2-411 of the Code (735 ILCS 5/2-410, 2-411 (West 2012)) demonstrate that 1-14-0342

res judicata does not bar a judgment creditor of a partnership from enforcing an outstanding

judgment against a partner who was named individually in the underlying lawsuit. For the

reasons that follow, we reverse the judgment of the circuit court of Cook County and remand the

cause for further proceedings.

¶2 BACKGROUND

¶3 A. Personal Injury Lawsuit

¶4 On February 11, 2007, plaintiff was involved in an automobile accident with an

employee of G&G, an Illinois general partnership owned by two brothers, Dagoberto and Jose

Gonzalez, the latter of whom is now deceased. He subsequently filed suit against G&G,

Dagoberto, the estate of Jose Gonzalez, and Luis Chavez, the driver of the vehicle, alleging

negligence in the causing of the accident. 1 As pertinent here, Dagoberto was named as a

defendant based solely on a theory of respondeat superior. In his third amended complaint,

plaintiff alleged, inter alia, that Dagoberto owned the Ford truck driven by Chavez; that

Dagoberto employed Chavez and allowed him to use the truck; that Dagoberto breached his duty

to plaintiff through the negligent acts of Chavez; and that as a direct and proximate result of this

breach, Chavez drove the Ford truck into plaintiff's car, causing him serious injury.

¶5 Following a trial, the jury returned a verdict against G&G and Chavez, but in favor of

Dagoberto and the estate of Jose Gonzalez. In its response to special interrogatories, the jury

specifically found that, at the time of the accident, Chavez was an employee of G&G, but not of

Dagoberto or Jose, individually. The jury ultimately awarded plaintiff $3,092,000 in damages

and judgment was subsequently entered on the verdict. No posttrial motions were filed and no

appeal was ever taken.

1 Jose Gonzalez, Dagoberto's brother and the other partner of G&G, died during the pendency of the negligence action. John Grob, as special administrator of the estate of Jose Gonzalez, was substituted as the defendant in the suit.

2 1-14-0342

¶6 B. The Instant Lawsuit and Bad-Faith Claims

¶7 At the time of the accident, G&G was insured under a business auto policy issued by

Century National Insurance Company (CNIC). After trial, CNIC refused to pay its policy limit

of $300,000 unless plaintiff would execute a full release of the entire judgment. Plaintiff filed

citations to discover assets against both CNIC and Dagoberto. On April 25, 2013, the circuit

court entered an agreed order requiring CNIC to pay the policy limit of $300,000 plus interest

and costs. Thereafter, in May of 2013, the court also ordered Dagoberto to assign to plaintiff "all

rights and choses of action that G&G has against CNIC." Dagoberto executed the assignment,

"under protest," in both English and Spanish versions.

¶8 On July 17, 2013, plaintiff filed the instant action against CNIC and Dagoberto. Plaintiff

brought various claims against CNIC for alleged bad faith in initially refusing to tender the

policy limit on behalf of G&G, its insured. As pertinent here, plaintiff also sought to recover

from Dagoberto, individually, the unsatisfied judgment amount he was awarded against G&G in

the prior 2007 personal injury suit.

¶9 Dagoberto filed a motion to dismiss pursuant to section 2-619(a)(4) of the Code, asserting

that plaintiff's claim was barred by the doctrine of res judicata because Dagoberto had already

obtained a judgment in his favor in the personal injury lawsuit. He characterized plaintiff's new

claim against him as merely "an attempt to get a second bite of the apple," noting that plaintiff

previously, but unsuccessfully, sought to enforce the judgment against him in a supplementary

proceeding.

¶ 10 Plaintiff responded by pointing out that sections 2-410 and 2-411 of the Code (735 ILCS

5/2-410, 2-411 (West 2012)), read together, create an exception to the res judicata doctrine.

3 1-14-0342

Specifically, he argued that sections 2-410 and 2-411 of the Code allow a separate action to

enforce a partner's individual liability for a partnership obligation.

¶ 11 On January 13, 2014, the circuit court entered an order granting Dagoberto's motion to

dismiss. The court agreed that plaintiff's claim was barred by res judicata, noting:

"Here *** Dagoberto was named a defendant in the underlying

action and a verdict was entered finding him not liable for the

judgment. The Plaintiff did not appeal this verdict and filed a

citation to discover assets. In that proceeding, the court limited the

Plaintiff to an assignment of Dagoberto's chose in action against

the insurance company. The Plaintiff cannot now seek to re-

litigate Dagoberto's liability and the claim against him *** is

barred by res judicata."

¶ 12 The court included a finding pursuant to Illinois Supreme Court Rule 304(a) (eff. Feb. 26,

2010) that there was no just reason to delay the enforcement or appeal of the lawsuit. We

therefore have jurisdiction over this appeal.

¶ 13 ANALYSIS

¶ 14 On appeal, plaintiff contends that the circuit court erred in dismissing his claim against

Dagoberto, which sought to recover the unsatisfied portion of the judgment against G&G, on the

ground that it was barred by res judicata. He argues that sections 306 and 307 of the Act create

a "secondary liability" for partners for the unsatisfied obligations of their partnerships. Further,

he argues that sections 2-410 and 2-411 of the Code "expressly authorize a separate action to

enforce a partnership obligation and provide the procedural means by which a separate judgment

against the individual partner may be obtained." He asserts that, in light of this statutory scheme,

4 1-14-0342

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Andrews v. Gonzalez
2014 IL App (1st) 140342 (Appellate Court of Illinois, 2014)

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