6. Preclusion

Question 1

If Case 1 and Case 2 are in different judicial systems (e.g., state and federal), what preclusion law does the court in Case 2 apply?

Answer 1

The court in Case 2 applies the preclusion law of the judicial system that decided Case 1.

Question 2

Claim Preclusion (Res Judicata) Requirements:

Answer 2

1. Case 1 and Case 2 were brought by the same claimant against the same defendant
2. Case 1 ended in a valid final judgment on the merits
3. Case 1 and Case 2 asserted the same “claim”

Question 3

General rule for when a judgment is “on the merits”:

Answer 3

Unless the court said otherwise when it entered the judgment, any judgment is “on the merits” UNLESS it was based on jurisdiction, venue, or indispensable parties

Question 4

Majority view (including federal law) of when Case 1 and Case 2 asserted the “same claim”:

Answer 4

A claim is any right to relief arising from a transaction or occurrence.

Question 5

Issue Preclusion (Collateral Estoppel) Requirements:

Answer 5

1. Case 1 ended in a valid, final judgment on the merits.
2. The same issue was actually litigated and determined in Case 1.
3. The issue was essential to the judgment in Case 1. That means the finding on this issue is the basis for the judgment.

Question 6

Against whom can issue preclusion be asserted?

Answer 6

It can only be used against somebody who was a party to Case 1 (or represented by a party in Case 1 – like a class action).