Claim and Issue Preclusion

Question 1

Res Judicata (Claim Preclusion)

Answer 1

Res judicata bars claimants from re-litigating a case they already lost. For res judicata to apply, (i) there must have been a valid, final judgment on the merits, (ii) both parties must be the same (or in privity with a party in the prior suit), and (iii) the new action must involve the same cause of action.

Question 2

Collateral Estoppel (Issue Preclusion)

Answer 2

Collateral estoppel bars re-ligitation of issues even with differing parties. For collateral estoppel to apply, (i) the issues in both actions must be the same, (ii) there must have been a final judgment as to that issue, (iii) the party against whom collateral estoppel is asserted must have had a fair opportunity to be heard on the matter, (iv) the posture of the case must be such that it would be unfair or inequitable to apply collateral estoppel.