Opinion ID: 1288392
Heading Depth: 1
Heading Rank: 4

Heading: issues

Text: The firm and Thomas cite Anco Mfg. & Supply Co., Inc. v. Swank, 524 P.2d 7, 13 (Okla. 1974), for the proposition that a stranger to the prior adjudication may assert issue preclusion defensively, as long as the party against whom it is being asserted was a party to the prior action. [11] Generally, the application of issue preclusion requires an identity of the parties to both proceedings. [12] However, in Anco this Court did not require that the parties be identical where a party who assumed a position in one adjudication attempted to assert an inconsistent position against another party in a subsequent lawsuit. We allowed the stranger to the first action to defensively assert estoppel when the party against whom the estoppel was being asserted was attempting to assert inconsistent facts in the second action. Anco is not dispositive of the present case because the contractor is not attempting to assert inconsistent facts in her lawsuit against the firm and Thomas from those she asserted in the arbitration proceeding. Regardless of whether the parties must be identical in both proceedings or whether only the party against whom the estoppel is being asserted must be the same, issue preclusion applies only to those issues actually adjudicated and necessary or essential to the prior judgment. [13] The party relying on a claim of issue preclusion bears the burden of establishing that the prior litigation has actually determined the question of fact sought to be precluded. [14] The test is whether the question of fact in issue in the second action is a question which was actually determined in the first adjudication. [15] In French v. Jinright & Ryan, P.C., Architects, 735 F.2d 433, 436 (11th Cir.1984), a contractor sued an architect for damages due to construction delays allegedly caused by the architect. Prior to the lawsuit, the contractor arbitrated disputes over the construction contract with the owner alleging that the architect was the cause of delays of the construction project. The contract excluded the architect as a party to the arbitration without written consent. The contractor was awarded partial damages in the arbitration. The court found that without a delineation of the disposition of the issues in the arbitration proceeding, there was no basis for determining whether the claims against the architect were precluded. The record was insufficient to determine whether: 1) all the allegations relating to architect were asserted against the owner in arbitration; 2) the claims relating to the architect were decided on the merits or on the ground that the owner was not responsible, even if the architect might be; or 3) whether the arbitrator awarded partial damages because it was determined that the owner was not liable because it was not the party responsible for causing the harm. Here, like the facts in French, the arbitration award does not clearly reflect exactly what issues were actually determined or whether all the issues raised were disposed of by the arbitrator. The award does not set forth any fact findings with respect to any claims made by either party in the arbitration proceeding. Nor does it set forth any reasons for rejection of any claim which either party may have made. [16] The only issue clearly decided in the arbitration proceeding was whether the contractor was entitled to damages from the power authority pursuant to the contractor/power authority construction contract. The arbitrator found that the power authority owed the contractor for some of the work which she completed on the project, and that the contractor owed the power authority for construction delays. It was not necessary for the arbitrator to find that the plans were negligently prepared and designed, or that Thomas acted fraudulently to resolve the issue decided in arbitration. The arbitrator could have decided the power authority's claims against the contractor on the grounds that: 1) the contractor was responsible for the construction delays by her own failure to comply with any of the terms of contract regardless of whether the firm and Thomas negligently designed the plans and specifications or acted fraudulently; or 2) the power authority was not the party responsible for causing the contractor's harm, even if the firm and Thomas might be. Nothing in the award indicates that the contractor's claims against the firm and Thomas were actually decided on the merits in the arbitration proceeding between the power authority and the contractor. Even if such a determination may have been made, the contractor should not be barred from litigating her negligence and fraud claims against the firm and Thomas when she was prevented from bringing and fully litigating her claims against them in the arbitration proceeding. [17] Accordingly, issue preclusion does not apply under the facts presented. The recovery of damages is a jury question. [18] The contractor may have had an opportunity to litigate the issue of damages relating to the power authority. However, even if she raised the issue of whether she was partially damaged by the firm and Thomas, the arbitrator lacked the authority to award the contractor any damages which may have been caused by them because they were not parties to the arbitration agreement or proceedings. Had the contractor been able to bring her claims for damages against the power authority and the firm and Thomas in one proceeding, she would have had the opportunity to fully litigate the issue of her damages. [19] Under those circumstances, the trier of fact may have determined that she was entitled to damages from the power authority for the work she completed on the contract as well as any damages that the contractor was able to prove she was entitled to from the firm and Thomas. [20] Accordingly, the contractor might have been awarded the full contract price and any other damages she was entitled to from the firm and Thomas. A jury may determine that the contractor has been paid for the full extent of the injuries suffered as the result of the disputes which arose out of the construction project when the power authority paid her damages pursuant to the arbitration award. However, a jury may also determine that the firm and Thomas acted negligently and fraudulently and, were it not for the negligence and fraud of the firm and Thomas, the contractor would have been able to comply with the contract terms and would have been paid for the full contract price. A material fact question exists concerning damages. [21]