Claim and Issue Preclusion

Question 1

FRCP - Claim Preclusion

What is required for claim preclusion (res judicata) to apply?

Answer 1

Before merger/bar applies, must show:
(i) earlier judgment is valid, final judment on the merits
(ii) cases are brought by same claimant against same defendant
(iii) same cause of action/claim is involved in the later lawsuit

Question 2

FRCP - Claim Preclusion

When do merger vs. bar occur?

Answer 2

Merger: If claimant won the earlier lawsuit, claim “merges” into the prior judgment

Barred: If defendant won the earlier lawsuit, claim is “barred” by the prior judgment

Question 3

FRCP - Issue Preclusion

Under issue preclusion (collateral estoppel), when does a judgment bind P or D in a subsequent action on different causes of action?

Answer 3

When there was a (a) final judgment and the issues from the previous case were (a) actually litigated and determined and (b) were essential to the judgment.

Party to be bound by prior judgment (usually D) must have been party to prior action or in privity with party to the prior action

Exception: NONPARTIES can use issue preclusion (offensively) if court determines it would be fair/equitable to allow them to do so.

Question 4

How many times can a plaintiff dismiss an action without prejudice (before D files answer)?

Answer 4

ONCE

Question 5

Do federal courts give same preclusive effect of a state court decision that another state court would?

Answer 5

YES.

Question 6

What is adverse judgment rule?

Answer 6

Bars plaintiff from relitigating a cause of action.