Claim & Issue Preclusion

Question 1

Basic idea

Answer 1

• The question is whether a judgment already entered (Case 1) precludes litigation of any matters in another case (Case 2).
• If Case 1 and Case 2 are in different judicial systems (for example, state and federal cts/cts in different U.S. states), the court in Case 2 applies the preclusion law of the judicial system that decided Case 1.

Question 2

Tip

Answer 2

• Unless a question says otherwise, start your analysis with claim preclusion. If it applies, Case 2 is dismissed. If it does not apply, then try issue preclusion. If issue preclusion applies, it streamlines the litigation in Case 2 by deeming an issue established in the case, and thus that issue will not be relitigated.

Question 3

Claim Preclusions (Res Judicata)

Answer 3

• A claimant may sue only once to absolve a claim.

Question 4

Requirements for Claim Preclusion: Same Claimant; Same D

Answer 4

• For a claim to be precluded (or barred), three things must be true.
• Case 1 and Case 2 were brought by the same claimant against the same defendant.

Question 5

Requirements for claim preclusion:
Valid, final judgment on the merits

Answer 5

• Case 1 must have ended in a valid final judgment on the merits.
• Unless the court said the judgment was “without prejudice”, any judgment is “on the merits” unless it was based on a lack of juris (both P & SM), improper venue, or a failure to join an indispensable party.
• This is true even if there was no adjudication in Case 1.

Question 6

Requirements for claim preclusion: Case 1 & Case 2 must be the same claim

Answer 6

• Case 1 and Case 2 must assert the “same claim.”
• Majority view is that a claim is any right to relief arising from a T/O

Question 7

Issue preclusion (collateral)

Answer 7

• An issue was litigated in Case 1.
• Same issue is presented in Case 2.
• But if issue preclusion applies, the issue cannot be relitigated in Case 2.
• It is deemed established in Case 2,
• There are five requirements for issue preclusion.

Question 8

Requirements for Issue Preclusion: Case 1 Ended in Valid, Final Judgment on the Merits

Answer 8

• This is the same as the second requirement for claim preclusion.

Question 9

Requirements for Issue Preclusion: Same Issue Actually Litigated and Determined in Case 1

Answer 9

• The issue must actually have been litigated in Case 1.

Question 10

Requirements for Issue Preclusion: Issue Was Essential to Judgment in Case 1

Answer 10

• The issue must have been essential to the judgment in Case 1.
• “Essential to the judgment” means that the finding on the issue is the basis for the judgment.

Question 11

Against whom is issue preclusion used? (Due process factor)

Answer 11

• Issue preclusion can be used only against somebody who was a party to Case 1 or in “privity” with a party
• “Privity” means that a party to Case 1 represented someone who was not a party to Case 1.

Question 12

By whom in preclusion is used? (Mutuality rules)

Answer 12

• When someone who was not a party (or in privity to) to Case 1 tries to use issue preclusion in Case 2, it is called “nonmutual” issue preclusion.

Question 13

Nonmutual Defensive Issue Preclusion

Answer 13

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