Opinion ID: 471851
Heading Depth: 2
Heading Rank: 1

Heading: Sua Sponte Recognition of Res Judicata Issue1

Text: 10 The doctrine of res judicata insures the finality of decisions, conserves judicial resources, and protects litigants from multiple lawsuits. Americana Fabrics, Inc. v. L & L Textiles, Inc., 754 F.2d 1524, 1528-29 (9th Cir.1985). McClain's complaint in his second action referred to the earlier judgment. It is consistent with these principles to permit a court which has been apprised by the plaintiff of an earlier decision arising out of the same contract upon which the action before the court is based, to examine the res judicata effect of that prior judgment sua sponte. See Evarts v. Western Metal Finishing Co., 253 F.2d 637, 639 n. 1 (9th Cir.), cert. denied, 358 U.S. 815, 79 S.Ct. 23, 3 L.Ed.2d 58 (1958). See also United Home Rentals, Inc. v. Texas Real Estate Comm'n, 716 F.2d 324, 330 (5th Cir.1983), cert. denied, 466 U.S. 928, 104 S.Ct. 1712, 80 L.Ed.2d 185 (1984); Boone v. Kurtz, 617 F.2d 435, 436 (5th Cir.1980); Hicks v. Holland, 235 F.2d 183, 183 (6th Cir.), cert. denied, 352 U.S. 855, 77 S.Ct. 83, 1 L.Ed.2d 66 (1956). 11 Here, McClain called to the bankruptcy court's attention the earlier judgment that had been entered less than three months before he filed his second action. The court, after hearing evidence on the nature of McClain's claim in his second action, questioned the res judicata effect of the prior judgment and requested post-trial briefs to address the applicability of that doctrine. Thus, both parties were permitted to address the question before the bankruptcy court ruled that the second action was barred by the prior judgment. Under these circumstances, the res judicata effect of the prior judgment was before the bankruptcy court, and the court's sua sponte recognition of that issue was entirely proper.