Lesson 11: Appeals, Collateral Estoppel, Res Judicata

Question 1

Res Judicata

Answer 1

A valid and final adjudication on the merits of a claim or cause of action precludes reassertion of that claim or cause of action in a subsequent action between the same parties or their privies, even as to claims that should have been, but were not, raised in the former case.

Question 2

Collateral Estoppel

Answer 2

An issue which has been previously litigated and necessarily determined in a previous action cannot be relitigated in a subsequent action.

Question 3

Rule of Bernhard v. Bank of America (Majority Rule)

Answer 3

Notwithstanding the mutuality rule, a majority of jurisdictions will allow a judgment to be asserted as a defense in a later action by one who was neither a party to the first suit nor in privity with a party to the first suit. However, nonmutual collateral estoppel may only be applied against one who was either a party to, or in privity with a party to the first suit.