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REPORTED IN THE COURT OF SPECIAL APPEALS OF MARYLAND No. 2689 September Term, 2004 ___________________________________ NORTH AMERICAN SPECIALTY INSURANCE COMPANY

v.

BOSTON MEDICAL GROUP ___________________________________ Hollander, Eyler, Deborah S., Woodward, JJ. ___________________________________ Opinion by Woodward, J. ____________________________________

Filed: September 8, 2006

REPORTED IN THE COURT OF SPECIAL APPEALS OF MARYLAND No. 2689 September Term, 2004 ___________________________________ NORTH AMERICAN SPECIALTY INSURANCE COMPANY

v.

BOSTON MEDICAL GROUP ___________________________________ Hollander, Eyler, Deborah S., Woodward, JJ. ___________________________________ Opinion by Woodward, J. ____________________________________

Filed:

This appeal arises from a decision of the Circuit Court for Anne Arundel County granting the motion of appellee, Boston Medical Group ("Boston Medical"), to dismiss the complaint of appellant, North American Specialty Insurance Company ("North American"), on the grounds that the dismissal of a previously filed action between the parties on statute of limitations grounds operated as a bar to the current action under the doctrine of res judicata. On appeal,

North American presents one issue for our review, which we have rephrased, as follows: Does a dismissal by the circuit court of a complaint because it is barred by the applicable statute of limitations constitute a final judgment on the merits, such that a later filed action between the same parties on the same claim is barred under the doctrine of res judicata? Finding no error, we affirm the circuit court's judgment. BACKGROUND The First Case On May 20, 2004, North American filed a complaint against Boston Medical in the Circuit Court for Anne Arundel County, seeking to recover unpaid deductibles allegedly owed by Boston Medical pursuant to a general liability insurance policy. Boston

Medical is a corporation that imports and distributes medical gloves. North American is the claims administrator for Commercial

Underwriters Insurance, which issued a products liability policy to Boston Medical to protect Boston Medical from claims arising out of any adverse effect from the use of latex gloves. The policy

contained a $25,000.00 deductible per claim for any settlement or

judgment, as well as all legal and investigative fees and costs. During the effective period of the policy, five claims were made against Boston Medical, commencing in 1997. All five claims

were eventually settled or otherwise resolved, and by letter dated June 27, 2003, North American requested reimbursement from Boston Medical for the deductible portion of each claim.1 The total

amount of the deductibles sought by North American was $56,103.74.

In its complaint, North American alleged, inter alia: 11. That the debt owed to [North American] by [Boston Medical] became due on December 25, 1997. Therefore, [North American] is claiming pre-[j]udgment interest at the legal rate of 6% from the date due of December 25, 1997 thru [the] date of filing, March 30, 2004[,] [sic] pursuant to Art[.] 3

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