United States Seventh Circuit

In a contract suit between companies who had jointly bid to install air conditioners in buildings owned by the Chicago Housing Authority, alleging that defendant violated 42 U.S.C. section 1981 by treating plaintiff as a "minority front" company to win the contract, dismissal for failure to state a claim is affirmed where: 1) plaintiff could not defeat the application of res judicata by arguing that the judge in a prior suit arising from the same facts, by allowing the plaintiff to dismiss it voluntarily and without prejudice, "expressly reserved the plaintiff-s right to maintain the second action"; 2) defendant could offer its res judicata defense in a Rule 12(b)(6) motion rather than by answering the complaint, since the complaint itself raised the issue; and 3) the complaint did not allege interference on racial grounds with the contract between the parties.

Appellate Information

• Argued 05/05/2008
• Decided 11/10/2008
• Published 11/10/2008

Judges

• POSNER, Circuit Judge., Before CUDAHY, POSNER, and ROVNER, Circuit Judges.

Court

• United States Seventh Circuit

Counsel

• For Appellant:
  
• Richard S. Fedder (argued), Carbondale, IL, for Plaintiffs-Appellants.


• For Appellees:
  
• James P. Gaughan, Jr. (argued), Schiff Hardin, Chicago, IL, for Defendants-Appellees.