A&R Janitorial v.Pepper Construction Company
A&R Janitorial v.Pepper Construction Company
Opinion
*453 ¶ 1 Teresa Mroczko was injured at work due to the alleged negligence of third parties. She filed a successful claim for workers' compensation benefits but failed to file a timely personal injury action against the third-party tortfeasors. Therefore, Mroczko's employer, A & R Janitorial (A & R), exercised its right under the Workers'
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Compensation Act to file a complaint in subrogation in the circuit court of Cook County. See 820 ILCS 305/5(b) (West 2014). Mroczko later filed her own personal injury action against the same defendants, but the circuit court dismissed the action as untimely. Mroczko then filed a petition to intervene in A & R's subrogation action. The Cook County circuit court denied that petition on
res judicata
grounds. The appellate court reversed and remanded, holding
res judicata
did not apply.
¶ 2 BACKGROUND
¶ 3 On August 17, 2012, Mroczko was employed by A & R as a custodian at a high-rise office building at 300 East Randolph Street in Chicago. At that time, Pepper Construction Company (Pepper) had been hired by the owner of the building to perform maintenance work at the premises. Pepper had hired a subcontractor, Perez & Associates, Inc. (Perez), to replace the carpets on certain floors of the building. While Mroczko was performing her cleaning duties, a desk that had been placed in an upright position fell and injured her. Following the accident, Mroczko filed a workers' compensation claim against A & R and was awarded relief.
¶ 4 Mroczko failed to file a timely personal injury action in the circuit court. Accordingly, on August 11, 2014, A & R filed a complaint in subrogation pursuant to section 5(b) of the Workers' Compensation Act. 820 ILCS 305/5(b) (West 2014). This provision permits an employee to file her own personal injury action against a third-party tortfeasor in order to recover damages for a work injury.
¶ 5 A & R filed its complaint pursuant to section 5(b) against Pepper, Perez, and several other defendants. 1 A & R alleged that defendants' negligent acts and/or omissions caused Mroczko's injuries and, thus, caused A & R to be liable for worker's compensation benefits. A & R requested judgment in its favor in an amount sufficient to cover its losses and damages, plus reasonable costs.
¶ 6 On June 11, 2015, while A & R's litigation was pending, Mroczko filed her own personal injury action against Pepper, Perez, and two additional defendants, one of whom was also named in the subrogation action. Upon Pepper's motion, the circuit court consolidated the two actions for purposes of discovery only. Perez filed a motion to dismiss Mroczko's complaint
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pursuant to section 2-615 of the Code of Civil Procedure ( 735 ILCS 5/2-615 (West 2014) ), alleging that the action was barred by the two-year statute of limitations for personal injury actions. See
¶ 7 On September 12, 2016, the circuit court entered an order dismissing with prejudice Mroczko's first amended complaint. The court entered a written finding under Illinois Supreme Court Rule 304(a) (eff. Mar. 8, 2016), that there was no just reason to delay enforcement or appeal of its decision. No appeal was taken from the order of dismissal.
¶ 8 On November 10, 2016, Mroczko, with the assistance of new counsel, filed a petition seeking leave to intervene in A & R's subrogation action and to amend A & R's complaint in order to seek additional damages for her injuries. Mroczko's petition failed to set forth any statutory grounds in support of her right to intervene in her employer's lawsuit.
¶ 9 Pepper filed a brief in opposition, arguing that Mroczko's petition to intervene was barred by the applicable statute of limitations and the doctrine of
res judicata
, pursuant to
Sankey Brothers, Inc. v. Guilliams
,
¶ 10 The circuit court agreed with Pepper that Sankey Brothers, Inc. was almost directly on point. The court held that res judicata barred Mroczko's intervention because her personal injury complaint raised the same cause of action against Pepper and the order dismissing her original action as untimely constituted a final judgment on the merits. On December 20, 2016, the court entered an order denying the petition to intervene and to file an amended complaint at law. On January 31, 2017, the court entered a Rule 304(a) finding.
¶ 11 Mroczko filed a timely appeal on February 4, 2017. In the appellate court, Mroczko argued (1) her right to intervene in her employer's action was supported by
Echales v. Krasny
,
¶ 12 The appellate court reversed the circuit court's judgment and remanded for further proceedings.
¶ 13 This court allowed Pepper's petition for leave to appeal. Ill. S.Ct. R. 315(a) (eff. Nov. 1, 2017).
¶ 14 ANALYSIS
¶ 15 The order subject to review in this appeal is the circuit court's December 20, 2016, order denying Mroczko's petition to intervene. The court's sole basis for denying the petition was that
res judicata
barred Mroczko from intervening in her employer's subrogation action after her personal injury complaint was dismissed with prejudice. A trial court's decision whether to allow intervention will not be reversed on appeal unless the court abused its discretion.
In re Application of the County Collector of Du Page County for Judgment for Delinquent Taxes for the Year 1992
,
¶ 16 "The doctrine of
res judicata
provides that a final judgment on the merits rendered by a court of competent jurisdiction bars any subsequent actions between the same parties or their privies on the same cause of action."
Rein v. David A. Noyes & Co.
,
¶ 17 Whether the first requirement for
res judicata
is met depends on whether the circuit court's September 12, 2016, order, dismissing with prejudice Mroczko's first amended complaint against
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Pepper, was a final judgment on the merits. A judgment or order is considered "final" when it terminates the litigation and fixes absolutely the parties' rights, leaving only enforcement of the judgment.
Richter
,
¶ 18 The second requirement for applying
res judicata
is an identity of cause of action. Under the transactional test used by Illinois courts, separate claims are considered the same cause of action if they "arise from a single group of operative facts, regardless of whether they assert different theories of relief."
River Park, Inc. v. City of Highland Park
,
¶ 19 The third requirement for
res judicata
, an identity of parties or their privies, is also present in this case. For
res judicata
purposes, the parties need not be identical to be considered the same.
Langone v. Schad, Diamond & Shedden, P.C.
,
¶ 20 Despite the fact that all three
res judicata
requirements were clearly present, the appellate court held the doctrine did not bar Mroczko's petition because she had an "interest" in her employer's action, in contrast to the employee in
Sankey Brothers, Inc.
,
¶ 21 The appellate court attempted to distinguish
Sankey Brothers, Inc.
, by pointing out that, in that case, the employer sought only indemnification for workers' compensation benefits owed to its employee.
¶ 22 Whether Mroczko had an interest in A & R's action based on A & R's pursuit of certain damages has nothing to do with whether res judicata bars her petition for intervention. The reason res judicata applies is that Mroczko previously asserted the same claim against the same defendant, which resulted in a final judgment on the merits. The fact that A & R's amended complaint sought damages for her pain and suffering is irrelevant to this analysis.
¶ 23 The appellate court also held that res judicata was inapplicable because there was no identity of parties between the two actions. This, too, is incorrect. The appellate court apparently misunderstood which party's claim was the one being barred. The court held that res judicata could not bar the action filed by A & R because A & R was not a party to Mroczko's untimely personal injury action. Id. However, A & R's claim is not the one barred by res judicata. Mroczko's petition to intervene in A & R's lawsuit is barred because her previous attempt to raise the same claim against Pepper was involuntarily dismissed as untimely.
¶ 24 Mroczko does not dispute that all three elements of
res judicata
are established in this case. Instead, she argues that it would be inequitable to apply
res judicata
to her petition because A & R has no interest in protecting her right to recovery for noneconomic damages. We reject this contention. This case does not present any inequities for this court to address. After Mroczko filed her personal injury complaint, Pepper was compelled to expend time and resources and incur legal expenses in order to defend that action. The circuit court dismissed the action based on the expiration of the applicable statute of limitations. The dismissal was fully consistent with the purposes of a statute of limitations, which are " 'to require the prosecution of a right of action within a reasonable time to prevent the loss or impairment of available evidence and to discourage delay in the bringing of claims.' "
Country Preferred Insurance Co. v. Whitehead
,
¶ 25 Mroczko did not appeal the order dismissing her action as untimely. Instead, she sought to intervene in A & R's action in order to obtain additional damages for her injuries. Because Mroczko's petition for intervention was her second attempt to sue Pepper for the same claim following an *459 *969 adjudication on the merits, the circuit court denied her petition on res judicata grounds. Thus, Mroczko's inability to intervene in the subrogation action did not result from the inequitable application of res judicata against her. If Mroczko has suffered damages as a result of being barred from suing Pepper directly for her injuries, her remedy may lie in a legal malpractice action against the attorney who filed an untimely personal injury action on her behalf. 2
¶ 26 The circuit court correctly held that res judicata barred Mroczko from intervening in A & R's subrogation action. We, therefore, hold that the court did not abuse its discretion in denying the petition to intervene. We make no findings on whether Mroczko otherwise had a right to intervene in her employer's subrogation action if res judicata were inapplicable or whether her petition for intervention was timely.
¶ 27 Finally, we note that A & R argues it should be allowed to control the litigation in the event that Mroczko is permitted to intervene in the subrogation action. Given our resolution of this appeal, it is not necessary to address this argument. In addition, we note that the appellate court purported to reverse an order of the circuit court entered after the notice of appeal was filed.
¶ 28 CONCLUSION
¶ 29 For the foregoing reasons, we reverse the judgment of the appellate court and affirm the judgment of the circuit court denying Mroczko's petition to intervene in the subrogation action filed by A & R.
¶ 30 Appellate court judgment reversed.
¶ 31 Circuit court judgment affirmed.
Chief Justice Karmeier and Justices Thomas, Kilbride, Garman, Theis, and Neville concurred in the judgment and opinion.
Several defendants initially named in A & R's complaint were subsequently dismissed from the litigation, leaving only Pepper and Perez.
This court takes judicial notice that a legal malpractice suit filed by Mroczko against her former attorney is currently pending in the circuit court of Cook County (Mroczko v. Belcher, No.
Reference
- Full Case Name
- A & R JANITORIAL, Appellee, v. PEPPER CONSTRUCTION COMPANY Et Al. (Pepper Construction Company, Appellant; Teresa Mroczko, Appellee).
- Cited By
- 12 cases
- Status
- Unpublished