Illinois Supreme Court Accepts Appeal in "Barragan v. Osman"
January, 2005
In Volume 3 of our 2004 CM Report, we reported on the First District's August 24, 2004 ruling in Barragan v. Osman, 352 Ill. App. 3d 33, 815 N.E.2d 842 (2004). In Barragan, the issue was whether Section 13-207 of the Illinois Code of Civil Procedure “saved” an untimely counterclaim, otherwise barred by the two-year statute of limitations proscribed by Section 13-204. Section 13-207 provides that a defendant may plead a counterclaim that is otherwise barred by the applicable statute of limitations. Section 13-204 provides, in pertinent part, that no action for contribution or indemnity may be filed more than two years after the party seeking contribution or indemnity has been served with process in the underlying action. In a split decision, the Appellate Court majority determined that the filing of a counterclaim for contribution or indemnity is governed by §13-204 and is thus time-barred if not filed within two years regardless of its technical status as a counterclaim.
On January 26, 2005, the Illinois Supreme Court accepted the petition for leave to appeal filed by Petitioner/Defendant Osman Construction Corporation, most likely due to the strong dissent in the Appellate Court. A decision is not expected until October. We will continue to monitor this case and update our readers.
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