Claim Preclusion Flashcards
What does claim preclusion do?
Forbids re-litigation of “claims” in a subsequent proceeding
What are the benefits of claim preclusion? (3)
(1) Provide Repose:
prevents harassment of the ∆, who must incur additional costs and want to rely on final judgment
(2) Efficiency / Conserve Judicial Resources:
repetitive and inefficient resolution of disputes takes it toll on courts, litigants, and the public.
(3) Consistency / Give Effect to Judicial Authority:
prevents the parties from seeking to undermine the authority of the judge’s determination of claims by obtaining different results in different forums
What are the costs of claim preclusion? (2)
(1) Stuck with Bad Judgments:
preclusive effect still occurs when judgment is inadequate / incorrect. (Moitie)
(2) Lack of Freedom for Parties:
πs and ∆s might have lots of strategic reasons for separating claims, e.g. they might get better results on certain types of claims in different forums, or they might need fast results on one claim, but need more time to work up another claim
What are the essential elements of claim preclusion? (4)
(1) A final, valid judgment on the merits
(2) Precludes the same parties (and those closely related to them)
(3) From litigating the same (or sufficiently similar) claim in a subsequent law suit
(4) Preclusion operates to prevent offensive and defensive splitting of claims that were or should have been asserted in the prior pleading. (Moitie)
What are the 3 views of Claim Preclusion?
(1) Majority:
One single cause of action exists from a single act
(2) Minority:
A single tort that results in damage to both property and person gives rise to 2 distinct causes of action
(3) Restatement §24
Considers a claim to encompass all rights to relief “with respect to all or any part of the transaction, or series of connected transactions, out of which the action arose”
What is the same parties rule?
Only the original parties and those in privity with them are bound by claims litigated in a prior action
What are the 6 exceptions to the same parties rule? (Taylor)
CPAARS
(1) Consent by parties to be bound by prior action (Kaufman)
(2) Preexisting substantive legal relationships (e.g. succeeding owners of property, bailee/bailor, assignee/assignor)
(3) Adequate representation by someone with the same interests who was a party (e.g. class actions, suits by trustees, guardians, fiduciaries)
(4) A party assumed control over prior litigation
(5) Relitigation of prior judgment thru a proxy / agent
(6) Special statutory schemes such as bankruptcy and probate proceedings
What does FRCP 8(c)(1) do?
Requires both issue (estoppel) and claim preclusion (res judicata) to be raised or waived (Scherer)
What does FRCP 13(a) do?
Requires counterclaims involving the same transaction or occurrence to be brought or waived
What if you don’t raise claim preclusion?
Precluded from bringing it later
What are considered judgments “on the merits”? (5)
(1) Default Judgment
(2) Summary Judgment or JMOL
(3) Trial with Verdict
(4) 12(b)(6) Dismissal
(5) Involuntary Dismissals
What are considered judgments not on the merits?
(1) Voluntary dismissal with prejudice
(2) Involuntary dismissal for lack of PJ or SMJ, improper venue, or failure to join a party under Rule 19
