Claim and Issue Preclusion

Question 1

Basic Idea

Answer 1

Whether a judgment already entered precludes litigation of an matters in another case

Question 2

Two different judicial systems?

Answer 2

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

Question 3

Requirements for Claim Preclusion

Answer 3

1. Same Claimant Suing the Same Defendant
2. Valid, Final Judgment on the Merits
3. Case 1 and Case 2 Must Be the “Same Claim”

Question 4

Requirements for Issue Preclusion

Answer 4

1. Case 1 Ended in Valid, Final Judgment on Merits
2. Same Issue Actually Litigated and Determined in Case 1
3. Issue was Essential to Judgment in Case 1

But note:

1. Issue preclusion can be used only when somebody who was a party to Case 1 or in “privity” with a party, i.e. party represented someone not a party

Question 5

Nonmutual Defensive Issue Preclusion

Answer 5

The person using preclusion was not a party to Case 1 and is the defendant in Case 2

Question 6

Nonmutual Offensive Issue Preclusion

Answer 6

The person using preclusion was not a party to Case 1 and is the plaintiff in Case 2

Question 7

Fairness Factors re: Nonmutual Offensive Issue Preclusion

Answer 7

1. Party to be bound had a full and fair opportunity to litigate in Case 1
2. The party to be bound has a strong incentive to litigate Case 1
3. The party asserting issue preclusion could have easily joined to Case 1
4. There has been no inconsistent findings on the issue