Background
Iryna Hrachova sued Deutsche Bank Trust Company Americas in July 2024, seeking declaratory relief and to quiet title to real property. After obtaining a clerk’s default, she moved for a final default judgment.
Rather than rule on that motion, the Marion County circuit court sua sponte dismissed the complaint with prejudice. The court concluded that a prior final foreclosure judgment concerning the property, which the Fifth District had affirmed in 2020, barred Hrachova’s claims under res judicata.
The Court’s Holding
The Fifth District reversed the dismissal in part and remanded. It held that the trial court violated Hrachova’s procedural due process rights by dismissing the complaint sua sponte, without notice or an opportunity to be heard, based on res judicata—an unpled affirmative defense.
The court did not decide the merits of Hrachova’s claims. It affirmed the remaining issue without further comment.
Key Takeaways
- A court may not sua sponte dismiss a complaint with prejudice on an unpled affirmative defense without notice and an opportunity to be heard.
- Res judicata was the basis for the trial court’s ruling, but the appellate court did not reach whether it ultimately applies.
- The case returns to the circuit court for further proceedings.
Why It Matters
The decision reinforces that procedural due process limits a trial court’s ability to dispose of a case on its own initiative, even where the court believes a prior judgment may be dispositive. Parties must have notice and an opportunity to address an affirmative defense before dismissal on that ground.