Benton v. Smith

• Decision Date: 17 June 1987
• Docket Number: No. 86-1981,86-1981
• Citation: 157 Ill.App.3d 847,109 Ill.Dec. 884,510 N.E.2d 952
• Parties: , 109 Ill.Dec. 884 Gertrude BENTON, Plaintiff-Appellant, v. Zirl SMITH, in his official capacity as Executive Director of Chicago Housing Authority, Renault Robinson, in his official capacity as Chairman of the Board of Directors of the Chicago Housing Authority; and the Chicago Housing Authority, Defendants-Appellees.
• Court: United States Appellate Court of Illinois

Page 952

510 N.E.2d 952

157 Ill.App.3d 847, 109 Ill.Dec. 884

Gertrude BENTON, Plaintiff-Appellant, v. Zirl SMITH, in his official capacity as Executive Director of Chicago Housing Authority, Renault Robinson, in his official capacity as Chairman of the Board of Directors of the Chicago Housing Authority; and the Chicago Housing Authority, Defendants-Appellees.

No. 86-1981.

Appellate Court of Illinois First District, Third Division.

June 17, 1987.

Cabrini Green Legal Aid Clinic (Richard T. Cozzola and Rachell Runnells, of counsel), Chicago, for plaintiff-appellant.

Chicago Housing Authority (Ann-Breen Greco, Sue-Ann Rosen and LaCoulton Walls, of counsel), Chicago, for defendants-appellees.

Presiding Justice McNAMARA delivered the opinion of the court:

Plaintiff Gertrude Benton appeals from a trial court order dismissing her suit against defendants Chicago Housing Authority (CHA), its executive director Zirl Smith, and its board chairman Renault Robinson. The trial court found that the present suit was res judicata as a result of a consent decree entered in an earlier class action in which plaintiff was an unnamed class member. On appeal, plaintiff contends that the doctrine of res judicata does not bar this action because the consent decree was not a decision on the merits; the class suit involved a different cause of action; notice of settlement in the class action was inadequate; and on the basis of equitable principles.

Pursuant to a written lease, plaintiff rents an apartment in the Cabrini Green Housing Project in Chicago. The project is run by defendants. The complaint alleges that in November 1983 the heat in the apartment stopped working. On December 24 or 25, 1983, the water pipes froze and burst. Water spilled throughout the apartment damaging plaintiff's personal property, including clothing, a television set, beds and linens.

Defendants provided plaintiff with a property damage form, which she completed and returned to CHA personnel. Shortly thereafter, a member of the CHA staff informed plaintiff that the form needed to be notarized. Plaintiff had the form notarized and then resubmitted it to the CHA. Subsequently, the CHA informed plaintiff that it had lost the form and requested that she submit a new form. On February 3, 1984, plaintiff resubmitted the form, which reported personal property damages of $1,500. CHA subsequently sent an employee to examine plaintiff's personal property.

Meanwhile, in March 1984, five other Cabrini-Green tenants filed a class action suit against defendants in Jones, et al. v. Chicago Housing Authority, et al. The Jones complaint alleged that the five named plaintiffs improperly had been denied rent abatements. It alleged further that defendants had established a policy and practice of noncompliance with their duties under paragraph 10 of the standard lease. Paragraph 10 provides that defendants must grant rent abatement where the premises are damaged to the extent that conditions create a hazard to the life, health or safety of the occupants. The complaint alleged that defendants failed to accept written requests for rent abatement; failed to conduct investigations regarding defective conditions; failed to repair hazardous conditions; failed to offer alternative accommodations; and failed to grant rent abatements in proportion to the seriousness of the damage and loss in value of the dwelling.

Count I of Jones sought a declaratory judgment that the policy and practices of defendants violated duties owed the class members under paragraph 10 of the lease; and an order requiring defendants to promulgate standards and rules to comply with duties owed under paragraph 10. Count II in Jones, which was subsequently dismissed, sought a determination as to the amount of rent abatement to which the individual named plaintiffs were entitled pursuant to paragraph 10 of the lease.

On June 13, 1984, the trial court in Jones certified the class of all tenants who have, since November 1, 1983, filed written requests for rent abatement, or who will file such requests, based upon conditions in CHA buildings which are hazardous to their life, health and safety.

In the present case, on November 5, 1984, a CHA attorney wrote to Benton stating that her claim for property damages was denied. The letter continued, "If you are interested in pursuing an action for negligence and to recover damages, you should seek appropriate legal action through the courts."

In Jones, a notice of a proposed settlement of the class action was mailed to plaintiff here and other class members in late 1984. The notice stated that in the pending class action plaintiffs sought a declaration that the CHA failed to grant tenant requests for rent abatement, pursuant to the procedures required by paragraph 10 of the lease, when conditions in the apartments were hazardous to the life, health and safety of the tenants. Three subclasses were created. Subclass A consisted of the named representatives and tenants who requested rent abatement and had placed their rent in escrow pending settlement of Jones. These plaintiffs would receive a 50% rent abatement. The notice stated that subclass A plaintiffs' "participation in this settlement shall constitute a release of any and all claims, including breach of the implied warranty of habitability, which are relevant to the pending eviction * * * for non-payment of rent."

Subclass B, of which Benton was a member, consisted of tenants who had requested rent abatement but had not placed their rent in escrow. These plaintiffs would receive a 45-day rent credit. The notice stated: "Plaintiffs' counsel [Legal Assistance Foundation of Chicago], as a condition of settlement in the Consent Decree, have agreed not to prosecute any warranty of habitability claims that members of settlement class B have for the period of time from November 1, 1983 up to December 1, 1984." Subclass C, of which Benton was also a member, consisted of tenants who might bring claims for rent abatement in the future.

The notice also advised tenants that, if they chose not to participate in the class action, they would be excluded from any award; they might be barred by the statute of limitations from other recovery "on this claim"; they would not be represented by the class' attorneys; and they might be subject to liability for unpaid rent and eviction. The notice also informed tenants that, if they chose to participate in the class, they would be "bound by and subject to any judgment in the case." Tenants could hire their own counsel and "enter an appearance" in the case, but if they did not do so, plaintiffs' counsel would represent them without charge.

On December 20, 1984, a consent decree was entered by the trial court in Jones. The decree incorporated the information which was contained in the notice, and also provided for defendants' adoption and implementation of an attached administrative circular as its official administrative rule regarding prospective rent abatement claims by all CHA residents. The decree provided that it was a final judgment order and served "as a release by plaintiffs and the plaintiff sub-classes of all claims arising out of Count I and Count II * * *." The decree also contained an express denial of liability on the part of defendants. Benton did not opt out of the class, and she received the 45-day rent credit along with other members of subclass B.

In the present action, in November 1985, Benton retained Cabrini Green Legal Aid Clinic as counsel and filed suit against defendants. The complaint alleged the relevant facts regarding the absence of heat in Benton's apartment, the frozen and burst water pipes, and the resulting damage to Benton's personal property.

Count I of the complaint alleged breach of paragraph 8 of the written lease. Paragraph 8 of the lease provides that the CHA shall maintain the premises in a safe condition; comply with relevant local and federal requirements; make necessary repairs; maintain plumbing and other facilities; and supply running water. Count II of the complaint alleged breach of an implied warranty of habitability. Count III alleged negligence. Benton sought $1,500 in damages. On June 23, 1986, the trial court dismissed the property damage lawsuit pursuant to section 2-619(a)(4) of the Code of Civil Procedure. (Ill.Rev.Stat.1985, ch. 110, par. 2-619(a)(4).) The court found that as a matter of law the issues could have been litigated in Jones.

A defendant may move to dismiss an action on the ground that the cause of action is barred by a prior judgment. For purposes of a section 2-619 motion to dismiss, all well-pleaded facts are admitted, together with all reasonable inferences which can be drawn from such facts. (Barliant v. Follett Corp. (1978), 74 Ill.2d 226, 23 Ill.Dec. 522, 384 N.E.2d 316.) The burden of proof is on the party moving for a dismissal. Meyer v. Murray (1979), 70 Ill.App.3d 106, 26 Ill.Dec. 48, 387 N.E.2d 878.

We find that the doctrines of collateral estoppel and res judicata do not bar the present action because the cause of action presented here differs from that presented in Jones, and the issues raised here could not have been litigated in Jones.

A critical distinction exists between the often confused doctrines of res judicata and collateral estoppel. An earlier judgment may have a preclusive effect in a later action under both doctrines. Under the broader doctrine of res judicata, a final judgment on the merits which is rendered by a court of competent jurisdiction is conclusive as to the rights of the same parties or their privies, but that judgment bars a later action only if it involves the same cause of action. Significantly, it is conclusive not only as to every matter raised in the first action, but also as to any matter which might have been raised. Housing Authority for LaSalle County v. Young Men's Christian Association of Ottawa (1984), 101 Ill.2d 246, 78 Ill.Dec. 125, 461...