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Bloch, et al v. Edward Frischholz

March 21, 2011

BLOCH, ET AL
v.
EDWARD FRISCHHOLZ, ET AL



Name of Assigned Judge Sitting Judge if Other or Magistrate Judge Virginia M. Kendall than Assigned Judge

TITLE CASE DOCKET ENTRY TEXT

For the reasons stated, the Court grants Bloch's Renewed Motion to Vacate and Reinstate [238] Claims.

O[ For further details see text below.] Docketing to mail notices.

STATEMENT

Plaintiff Lynne Bloch ("Bloch") moves to reinstate the state law claims that she alleged in Counts VII and VIII of her Second Amended Complaint. Both Counts are brought pursuant to the Illinois Condominium Property Act, 765 ILCS 605/18.4 ("Condominium Act"). Specifically, Count VII alleges a violation of the Condominium Act and Count VIII alleges a breach of fiduciary duty pursuant to the Condominium Act. For the following reasons, the Court grants Bloch's Renewed Motion to Vacate and Reinstate Claims ("Renewed Motion").

On September 16, 2005, Bloch filed suit against Edward Frischholz and the Shoreline Towers Condominium Association (together "Defendants") alleging both federal and state claims. Bloch filed a Second Amended Complaint on December 1, 2005. (R. 32.) On August 7, 2006, the district court granted summary judgment for Defendants on Bloch's federal claims. (R. 186, 192.) Having entered judgment in favor of Defendants on the federal claims, the district court declined to exercise supplemental jurisdiction on Bloch's state law claims in Counts VII and VIII. (Id.) The district court dismissed Bloch's state law claims without prejudice. (Id.) Bloch appealed this decision on September 1, 2006 (R. 194.)

While her appeal was pending, Bloch filed the state law claims alleged in Counts VII and VIII in state court. The Seventh Circuit affirmed the district court's summary judgment decision on July 10, 2008. See Bloch v. Frischholz, 533 F.3d 562 (7th Cir. 2008) ("Bloch I"). The Seventh Circuit then granted a rehearing en banc on October 30, 2008.

Bloch's state law claims were dismissed by the state court on December 4, 2008. Bloch's First Amended Complaint in state court was dismissed on March 25, 2009.

The Seventh Circuit reheard the case en banc on May 13, 2009 and issued an order on November 13, 2009 affirming in part and reversing in part the district court's decision. The Seventh Circuit remanded the case to the district court and stated that "[b]ecause of the reversal of summary judgment on three of the four federal claims, the state law claims must also be reinstated." Bloch v. Frischholz, 587 F.3d 771, 787 (7th Cir. 2009) (en banc) ("Bloch II").

Meanwhile, Bloch's state court claims continued: she filed a Second Amended Complaint in state court that was dismissed on August 25, 2009; Bloch subsequently filed a Third Amended Complaint in state court.

Bloch filed a Motion to Vacate the Entered Judgment and Reinstate State Claims ("Motion to Reinstate") before the district court on March 15, 2010. (R. 225.) On March 18, 2010 the case was reassigned to this Court. (R. 228.) The Court denied Bloch's Motion to Reinstate without prejudice on May 27, 2010, instructing Bloch that she may reassert her Motion to Reinstate in connection with the parties's Motions for Summary Judgment. (R. 236.) The Court clarified this order on June 10, 2010, allowing Bloch to refile her Motion to Reinstate on the same schedule as the Motions for Summary Judgment that were to be filed in the related case of Gassman v. Frischholtz, 05 CV 5379. (R. 237.)

Before the Court clarified its order, Bloch's Third Amended Complaint was stricken by the state court on June 3, 2010. Bloch filed her Fourth Amended Complaint in state court on June 25, 2010. Bloch filed the instant Renewed Motion before this Court on July 16, 2010. (R. 238.) On August 9, 2010, the state court dismissed Bloch's Fourth Amended Complaint with prejudice.

Bloch then filed a Motion to Reconsider the August 9, 2010 order in state court. On February 28, 2011, the state court granted Bloch's Motion to Reconsider and vacated its earlier order dismissing her Fourth Amended Complaint with prejudice.

Defendants now argue that this Court is collaterally estopped from hearing Bloch's state law claims in Counts VII and VIII of her Second Amended Complaint. Collateral estoppel applies and precludes relitigation of an issue if: (1) the issue decided in the prior adjudication is identical with the one presented in the suit in question; (2) there was a final judgment on the merits in the prior adjudication; and (3) the party against whom estoppel is asserted was a party or in privity with a party to the prior adjudication. See ...


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