3-parts of claim preclusion:
- 1. Actions #1 and #2 involve same claim
- 2. Same parties or "privies" (relationship between parties are strong or unusual enough to bind 2nd parties--1st were representative of 2nd)
- 3. Action #1 resolved on merits
1. How do we know if the two actions involve the same claim?
- Different jurisdictions answer “how we know the claim is the same” differently.
- What counts as related transactions?
- Determined by how fit together due to time/space/etc. (Yeazell, pp. 694-695).
- Rule 15c -- relation back... part of same transaction/occurrence (i.e., similar in various settings, due to efficiency.)
- OR evidentiary approach (Illinois), Yeazell, p. 662, second from bottom paragraph (NOT from Restatement).
- Permissive counterclaims:
- Have to have an independent basis for subject matter jurisdiction.
- Part of different transaction.
- Compulsory counterclaims:
- Part of same transaction, must be brought now or will be precluded.
- Rule 13 forces parties to raise certain claims chosen by opponents or lose them.
- A result of balancing interests.
- But ONLY if REQUIRED to bring if you CAN bring that claim (federal questions, etc.)
2. Involve same parties or their "privies."
- Privity not that interesting... says Professor Amar...
- But were you or your agent really present in the previous lawsuit?
- Employee/employer
- Insurer/Insured
3. Resolved on Merits?
- Lack of jurisdiction: NO
- Dismissal for failure to prosecute? Complicated...
Merrel Lynch v. Gargallo (sp?)
- Merril Lynch sues Gargallo in state court for money owed.
- Later Gargallo files a lawsuit in federal court resurrecting securities violations.
- Look to Ohio law to see impact of 1st judgment on 2nd.
- Ohio would treat second claim as same as counterclaim in first lawsuit.
- (No issue about parties as they are the same.)
- But dismissal on the merits in 1st?
- YES: otherwise no one would care about Ohio discovery rules.
- Sanctions must be given weight.
- So if Ohio would have blocked, federal courts must as well.
- BUT Ohio NEVER could have processed securities claim in the first place!