Opinion ID: 1996492
Heading Depth: 3
Heading Rank: 2

Heading: Collateral Estoppel Applied to Allstate

Text: [¶ 17] The next question is whether collateral estoppel applies to Allstate, as Beal's insurer, which was not an actual party to the arbitration. Collateral estoppel applies on a case-by-case basis if it serves the interests of justice. Van Houten, 655 A.2d at 333 (quotation marks omitted). Collateral estoppel `prevents the relitigation of factual issues already decided if the identical issue was determined by a prior final judgment, and the party estopped had a fair opportunity and incentive to litigate the issue in a prior proceeding.' Portland Water Dist., 2008 ME 23, ¶ 9, 940 A.2d at 1100 (quoting Macomber v. MacQuinn-Tweedie, 2003 ME 121, ¶ 22, 834 A.2d 131, 138-39). We have recognized factors to consider when determining whether a party has had a full and fair opportunity to litigate a claim, including the size of the claim, the forum of the prior litigation, whether the issue was a factual or a legal one, the foreseeability of future suits, the extent of the previous litigation, the availability of new evidence, the experience of counsel, indications of a compromise verdict, [and] procedural opportunities available in the second suit that were unavailable in the first. Hossler v. Barry, 403 A.2d 762, 769 (Me. 1979) (citations omitted). [¶ 18] In addition, a party asserting nonmutual collateral estoppel  where the parties are not the same parties or privies to the prior proceedingmust establish that the party to be estopped was a party or in privity with a party in the prior proceeding. See Van Houten, 655 A.2d at 333; Hossler, 403 A.2d at 770 (eliminating the requirement of mutuality for purposes of collateral estoppel); see also N.E. Harbor Golf Club, Inc. v. Town of Mt. Desert, 618 A.2d 225, 227 (Me.1992) (distinguishing between being the same parties and being in privity for purposes of res judicata). The party resisting collateral estoppel has the burden of demonstrating that it would be prejudiced by its application. Van Houten, 655 A.2d at 333-34 (stating that the analysis of whether a party has been prejudiced involves the same factors relevant to whether a party had a full and fair opportunity to litigate a prior claim, as listed in Hossler ). [¶ 19] Here, there is no dispute that the factual issue of Beal's total damages as it relates to her Allstate UIM coverage is identical to the issue of damages determined by the arbitrator. We have also resolved, above, that this arbitration award satisfies the final judgment requirement for collateral estoppel. The issues remaining are whether Allstate, as Beal's UIM insurer, was a party to the arbitration proceedings or in privity with Prosky, and whether Prosky had a full and fair opportunity and incentive to litigate the issue of damages in the arbitration. [¶ 20] Privity exists when two parties have a commonality of ownership, control, and interest in a proceeding. Id. at 333; N.E. Harbor Golf Club, 618 A.2d at 227. In Van Houten, we held that one employer could be collaterally estopped from relitigating the nature of an injury decided in a Massachusetts workers' compensation hearing involving another employer. 655 A.2d at 334. We reasoned that because the two employers had identical ownership and management and were insured by the same workers' compensation policy, there was sufficient identity of ownership, control and interest in the prior proceeding to establish privity for purposes of collateral estoppel. Id. at 333. [¶ 21] The parties do not dispute that Allstate, as Prosky's liability insurer, provided counsel for Prosky in the arbitration proceeding, that this Allstate was the same company that insured Beal, or that Allstate was aware of the arbitration. In the arbitration proceeding, Prosky and Allstate had a goal of keeping Beal's damages at the lower end of the negotiated $60,000-$100,000 high-low range. If allowed to relitigate the issue of damages, Allstate would have substantially the same goal of keeping Beal's damages as close to or below $100,000the amount for which Maine Bonding's UIM coverage was primary. It is evident that whether providing UIM coverage for Beal or providing a defense for Prosky, Allstate's goal would be to minimize the arbitrator's determination of Beal's total damages. Viewing the facts in the light most favorable to Allstate, we conclude that Allstate, as Beal's UIM insurer, was in privity with Prosky. [¶ 22] Next, considering the factors outlined in Hossler, we conclude that Prosky had a full and fair opportunity and incentive to litigate the issue of Beal's damages. See 403 A.2d at 769. The size of the claim and the extent of the previous litigation, in which both parties were adequately represented, were substantial enough that Prosky had incentive to defend the claim vigorously. The arbitrationa mutually agreed upon resolution of a complaint filed in the Superior Court was a reasonable forum with adequate procedural opportunities for resolving damages. There is no indication of a compromise verdict because the arbitrator made his determination without knowledge of the high-low provision. Finally, on this record, there is no new evidence that would justify relitigation of the issue. [¶ 23] Considering these same factors, Van Houten, 655 A.2d at 333-34, we also determine that Allstate failed to meet its burden of establishing that it would be prejudiced by application of collateral estoppel in this instance. [¶ 24] To summarize: there was privity between Allstate, as Beal's UIM insurer, and Prosky; Prosky had a full and fair opportunity to litigate the issue of Beal's damages during arbitration; and Allstate has failed to demonstrate that collateral estoppel would result in prejudice. The court did not err in concluding that Allstate is collaterally estopped from relitigating the arbitrator's determination that Beal's damages totaled $135,000 and entering a partial summary judgment in favor of Beal.