Gadson v. Among Friends Adult Day Care, Inc.
2015 IL App (1st) 141967
| Ill. App. Ct. | 2015Background
- On March 18, 2011 Robert Gadson was in an auto accident; his insurer American Access paid property damage less a $500 deductible.
- American Access (through attorney Scaletta) filed a municipal subrogation suit in Gadson’s name seeking vehicle-damage recovery; the complaint did not identify American Access as subrogee or include a verification. Gadson retained a $500 interest.
- While that property-damage case was pending, Gadson filed a separate law‑division suit alleging personal injuries from the same accident.
- The subrogation/property-damage case settled and was dismissed with a release (Gadson later swore he did not sign the release). Settlement checks named American Access and counsel.
- Defendants moved to dismiss the personal‑injury suit as barred by res judicata (and Peters additionally argued release barred the claim). The trial court dismissed; Gadson appealed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether res judicata bars Gadson’s later personal‑injury suit where insurer had previously litigated property damage in a suit styled in Gadson’s name | Gadson: the earlier suit was a subrogation action (insurer’s suit brought in his name with his pecuniary interest intact), so 735 ILCS 5/2‑403(d) exempts his personal‑injury claim from res judicata | Defendants: §2‑403(c) required the insurer to sue in its own name and verify subrogation; because the complaint lacked that, it was not a subrogation action and §2‑403(d) does not protect Gadson | Court: Reversed trial court — the insurer could properly sue in Gadson’s name because he retained a de minimis pecuniary interest; §2‑403(d) applies and res judicata does not bar the personal‑injury suit |
| Whether release and settlement in the property‑damage case barred the personal‑injury suit | Gadson: he swore he never signed the release; release (even if valid) addressed property damage only, not personal injury | Peters: release of all claims extinguished Gadson’s right to sue | Court: Release did not establish entitlement to dismissal — Gadson’s unopposed affidavit raised a factual dispute as to signing, and the instrument discharged property damage only, not personal injuries |
Key Cases Cited
- Zurich Insurance Co. v. Amcast Industrial Corp., 318 Ill. App. 3d 330 (Ill. App. 2000) (discussing subrogation exception to res judicata and policy reasons for protecting insureds)
- Landrum v. Time D.C., Inc., 85 Ill. App. 3d 985 (Ill. App. 1980) (statutory exception to res judicata in subrogation context protects subrogors)
- Mason v. Parker, 295 Ill. App. 3d 1096 (Ill. App. 1998) (general rule against claim-splitting in car-accident suits)
- Radtke v. International Heater Co., 140 Ill. App. 3d 542 (Ill. App. 1986) (insured’s de minimis pecuniary interest permits subrogation action in insured’s name)
- Orejel v. York International Corp., 287 Ill. App. 3d 592 (Ill. App. 1997) (insurer need not be named when insured retains a financial stake)
- Shaw v. Close, 92 Ill. App. 2d 1 (Ill. App. 1968) (when insurer has fully compensated insured, action must be brought in insurer’s name)