Cary v. City of Watseka

870 F. Supp. 2d 567, 2012 U.S. Dist. LEXIS 90262, 2012 WL 2497282
CourtDistrict Court, C.D. Illinois
DecidedJune 28, 2012
DocketNo. 2012 CV 2059
StatusPublished
Cited by2 cases

This text of 870 F. Supp. 2d 567 (Cary v. City of Watseka) is published on Counsel Stack Legal Research, covering District Court, C.D. Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cary v. City of Watseka, 870 F. Supp. 2d 567, 2012 U.S. Dist. LEXIS 90262, 2012 WL 2497282 (C.D. Ill. 2012).

Opinion

[568]*568 ORDER

HAROLD A. BAKER, District Judge.

The plaintiffs, Judy and Warren Cary (the “Carys”) commenced this action against the City of Watseka, Illinois (the “City”) pursuant to Section 1983 of the Civil Rights Act, 42 U.S.C. § 1983. The plaintiffs allege that the City interfered with their efforts to renovate their flood-damaged property in order to take the property by eminent domain and to pay the plaintiffs far less in fair market value than it would have paid had the plaintiffs renovated the property. According to the plaintiffs, the defendant’s conduct violated the rights of the plaintiffs secured and guaranteed by the Constitution and laws of the United States, specifically the Fifth and Fourteenth Amendments, actionable under Section 1983 of the Civil Rights Act.

The City has filed a motion to dismiss the plaintiffs’ complaint, with prejudice, based on res judicata. The Carys have filed a memorandum in opposition to the City’s motion to dismiss. Because res judicata is an affirmative defense, the City should have raised it and then moved for judgment on the pleadings under Rule 12(c). Carr v. Tillery, 591 F.3d 909, 913 (7th Cir.2010). Therefore the court will construe the motion as a combined answer and Rule 12(c) motion. For the following reasons, the motion is granted.

BACKGROUND

In January 2008, extensive flooding occurred throughout the Watseka area, resulting in substantial property damage to the plaintiffs’ home. Later the same year, the plaintiffs received a payment from FEMA in the amount of $28,200. In February 2009, the City offered the plaintiffs $20,000 for their property. In February 2010, the City reduced the offer to $10,000. On June 1, 2010, the City filed a complaint for condemnation in state court. The Carys filed an answer, denying the City’s necessity to acquire the property and requesting that the complaint be dismissed, or alternatively that they be awarded full and just compensation for the taking. On August 11, 2010 the City filed a response to the Carys’ motion, setting forth evidence that, in reliance on an updated appraisal, it had made offers to purchase the plaintiffs’ property for $3,150 on April 1, 2010, and $3,000 on April 26, 2010, to which the Carys failed to respond. On February 4, 2011, the Carys filed a counterclaim, claiming that the City took action to prevent them from renovating their property to its full value and this interference constituted willful and malicious conduct. On March 23, 2011, the parties agreed to judgment1 in the amount of $13,500. On March 25, 2011, the Carys moved to voluntarily dismiss their counterclaim, without prejudice. On the same day both parties jointly moved that the case be dismissed, with prejudice. The motion for dismissal was granted on March 25, 2011.

ANALYSIS

The City alleges that the plaintiffs’ claim has been the subject of prior litigation in state court, and thus seeks to dismiss this case in federal court based on the doctrine of res judicata.

In federal court, a state court judgment “must be given the same res judicata effect that it would be given in the court of the rendering state.” Torres v. Rebarchak, 814 F.2d 1219, 1222 (7th Cir.1987). Furthermore, res judicata “applies with full force to civil rights actions,” and applies even if the dismissal was the [569]*569result of a settlement. Torres, 814 F.2d at 1222-1223. Res judicata applies if there is: “(1) a final judgment on the merits in an earlier action, (2) an identity of the cause of action in both the earlier and later suit, and (3) an identity of parties or privies in the two suits.” Tartt v. Nw. Cmty. Hosp., 453 F.3d 817, 822 (7th Cir.2006). When applicable, res judicata bars not only those claims that were litigated, but also those claims that could have been litigated but were not. Palka v. City of Chicago, 662 F.3d 428, 437 (7th Cir.2011).

A. “Claim-Splitting”

The Carys agree that discouraging “claim-splitting” is one of the primary policies underlying the doctrine of res judicata. Indeed, one cannot maintain a suit that arises from the same transaction underlying a previous suit simply by changing legal theories. Carr, 591 F.3d at 913— 914. A plaintiff who splits his or her claim through voluntary dismissal and then later refiles “subjects himself to a res judicata defense.” Muhammad v. Oliver, 547 F.3d 874, 876-877 (7th Cir.2008). However, ordinarily a second suit that arises from the same set of facts is barred only if there was a final judgment with prejudice in the first suit. Muhammad, 547 F.3d at 876. The Carys argue that the only matter that has been dismissed with prejudice is the City’s eminent domain action. The Carys claim that because they voluntarily dismissed their counterclaim, it is not barred by the doctrine of res judicata.

The Carys’ argument is seriously undermined by Muhammad, a case in which the plaintiff moved to dismiss its state court suit. Muhammad, 547 F.3d at 876. The judge granted the motion, dismissing the plaintiffs suit without prejudice. Muhammad, 547 F.3d at 876. Two years later, the plaintiff brought suit in federal court, based on a violation of a federal civil rights statute arising out of the same set of facts as the state court action. Muhammad, 547 F.3d at 876. The Seventh Circuit affirmed the dismissal, ruling that the case was barred by res judicata. Muhammad, 547 F.3d at 876-78.

Similar to Muhammad, the Carys now bring a civil rights action in federal court after a previous voluntary dismissal in state court. The complaint filed here is virtually identical to the counterclaim filed in state court, with a change in legal theory. In fact, aside from jurisdictional and venue issues, the complaint filed in this Court is identical to the counterclaim filed by the Carys in the state court action. By choosing to split the claim, the Carys have subjected themselves to a res judicata defense. In Hudson v. City of Chicago, the issue was whether dismissal of a negligence claim followed by a subsequent voluntary dismissal of a remaining willful and wanton misconduct claim barred the refiling of the latter claim. Hudson v. City of Chicago, 228 Ill.2d 462, 321 Ill.Dec. 306, 889 N.E.2d 210, 213 (2008). The Illinois Supreme Court concluded that the dismissal of the negligence count was a final adjudication on the merits and thus the willful and wanton misconduct claim was barred by res judicata. While the Carys allege that their action is distinguishable from Hudson, the Court agrees with the City that the case at bar is almost identical to Hudson.

B. Agreement to Split the Claim

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870 F. Supp. 2d 567, 2012 U.S. Dist. LEXIS 90262, 2012 WL 2497282, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cary-v-city-of-watseka-ilcd-2012.