Opinion ID: 2144382
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Heading: Choice of law. Initially we must decide whether Iowa or New York law will be applied to determine the preclusive effect of National's New York judgment.

Text: The full faith and credit clause of the United States Constitution states: Full Faith and Credit shall be given in each State to the public Acts, Records, and judicial Proceedings of every other State. U.S.Const. art. 4, § 1. That clause renders the doctrines of res judicata and collateral estoppel compulsory as between the States. Durfee v. Duke, 375 U.S. 106, 109, 84 S.Ct. 242, 244, 11 L.Ed.2d 186, 188 (1963) (Full faith and credit . . . requires every State to give to a judgment at least the res judicata effect which the judgment would be accorded in the State which rendered it.); Phillips v. Cooper, 253 Iowa 359, 363, 112 N.W.2d 317, 319 (1961); Vestal, Res Judicata/Preclusion V-120 (1969). It requires the courts of each state to give to the judgment of another state the same preclusive effect between the parties as is given such judgment in the state in which it was rendered, and this is so even if the judgment is obtained by default. Riehle v. Margolies, 279 U.S. 218, 225, 49 S.Ct. 310, 313, 73 L.Ed. 669, 673 (1929). Under the full faith and credit clause, the preclusive effect of a judgment must be determined by the law of the state in which it was rendered. Restatement (Second) of Conflicts of Laws § 95, and Comment a (1971). We must therefore apply New York law to determine whether the New York judgment precludes Seley's counterclaim. Restatement, supra § 95, Comment g (The local law of the State where the judgment was rendered will be consulted to determine . . . whether a defendant will be precluded from raising in a subsequent proceeding issues that he could have, but failed to, assert in a counterclaim in the original proceeding.); Secor v. Siver, 165 Iowa 673, 679, 146 N.W. 845, 848 (1914); Folsom v. Winch, 63 Iowa 477, 478, 19 N.W. 305, 306 (1884).