Default Action Res Judicata.

Byline: Derek Hawkins

7th Circuit Court of Appeals

Case Name: Patrick J. Doherty v. Federal Deposit Insurance Corporation, et al.

Case No.: 18-3133

Officials: FLAUM, KANNE, and SCUDDER, Circuit Judges.

Focus: Default Action Res Judicata

Washington Federal Bank brought a default action against Patrick Doherty, John Farano, Jr., and Worth Conversion, LLC, for notes related to various real estate ventures. Doherty raised affirmative defenses on behalf of himself and Worth, but the bank dismissed Doherty and Worth from the action, without prejudice, after obtaining a default judgment against Farano. Doherty then attempted to bring this suit against the bank with claims founded on similar grounds as his previously-raised affirmative defenses. But the Cook County Circuit Court determined that Doherty's claims were barred by res judicata thanks to the default judgment entered against Farano. Doherty appealed to the Illinois Appellate Court, but before his appeal was heard...