Opinion ID: 6713
Heading Depth: 2
Heading Rank: 1

Heading: Collateral Estoppel Generally

Text: 13 On appeal, Daniels contends that the court below erred in its determination that the judgment in the Kerr County court bars his present claims on collateral estoppel grounds, and that the application of collateral estoppel to his cause of action denies him due process. 14 In the instant action, Daniels brought suit against Equitable for conversion, breach of contract, failing to raise Daniels' procedural defenses in the garnishment action, failing to realize that the $51,000 check was not subject to the writ of garnishment, and intentional and/or negligent infliction of emotional distress. Daniels claims that these issues either were not presented for judicial determination in the Kerr County proceeding, or that they were not essential or necessary to the prior judgment. 15 In the Kerr County action, Daniels alleged that (1) the funds were exempt from garnishment; (2) the funds were not a debt owed to Daniels by Equitable; (3) the funds were not attached by the writ of garnishment; and (4) Equitable was not entitled to interplead. The Kerr County court rejected each of these defenses and entered a judgment in favor of Pecan Valley and approving of Equitable's interpleader. Based on the resolution of these claims and the issues underlying them, it appears that the district court properly determined the present cause of action is barred on collateral estoppel grounds. 16 The Full Faith and Credit Act, 28 U.S.C. Sec. 1738, requires federal courts to give the same preclusive effect to state court judgments that those judgments would be given under the law of the state in which judgment was rendered. See A.L.T. Corporation v. Small Business Administration, 801 F.2d 1451, 1455 (5th Cir.1986); Migra v. Warren City School District Board of Education, 465 U.S. 75, 81, 104 S.Ct. 892, 896, 79 L.Ed.2d 56 (1984). Accordingly, pursuant to the statute, this Court is required to give the Texas judgment rendered by the Kerr County court the same preclusive effect as it would have in a Texas court. Matter of Troy Dodson Const. Co., Inc., 993 F.2d 1211, 1214 (5th Cir.1993); Matter of Brady, Texas Mun. Gas Corp., 936 F.2d 212, 217 (5th Cir.), cert. denied --- U.S. ----, 112 S.Ct. 657, 116 L.Ed.2d 748 (1991).