Opinion ID: 2344070
Heading Depth: 1
Heading Rank: 6

Heading: Claim and Issue Preclusion Apply

Text: The district court's references to res judicata are broad enough to encompass both claim and issue preclusion. The modern trend is to more precisely refer to claim preclusion as res judicata and issue preclusion as collateral estoppel. Waterview Resolution Corp. v. Allen, 274 Kan. 1016, 1023, 58 P.3d 1284 (2002). But since it is not entirely clear whether the district court was relying upon claim or issue preclusion, we will consider both doctrines under the general umbrella of res judicata. Whether claim or issue preclusion applies is a question of law subject to unlimited appellate review. Winkel v. Miller, 288 Kan. 455, 467, 205 P.3d 688 (2009). Claim preclusion is a common-law doctrine, designed to prevent relitigation of a final judgment. In Kansas, four elements must be met to invoke the doctrine. Most plainly stated, claim preclusion requires: (1) the same claim; (2) the same parties; (3) claims that were or could have been raised; and (4) a final judgment on the merits. Winston v. State Dept. of SRS, 274 Kan. 396, 413, 49 P.3d 1274 (2002). In the case before us, there is no real question that these four elements are present. The same parties are involved and the original tax exemption proceedings reached a final judgment on the merits. Furthermore, the second effort at taxation involves the same claim, which is defined as whether the subject property qualified for a tax exemption under K.S.A. 79-201k(b) First during the tax years in question. And finally, the County's interpretation of the statute as argued in this appeal could have been raised during the first proceedings. We hold that the elements of claim preclusion are met. Issue preclusion prevents a second litigation of the same issue between the same parties, even when raised in a different claim or cause of action. Three elements are required for issue preclusion: (1) a prior judgment on the merits that determined the parties' rights and liabilities on the issue based upon ultimate facts as disclosed by the pleadings and judgment; (2) the same parties or parties in privity; and (3) the issue litigated must have been determined and necessary to support the judgment. Venters v. Sellers, 293 Kan. 87, 98, 261 P.3d 538 (2011). Again, we hold that all three elements are satisfied in this case. The same parties are involved, there was a prior judgment on the merits, and the determination that the airplanes qualified for exemption was necessary to the judgment. But even though the elements of claim and issue preclusion are technically satisfied, the County argues that neither doctrine should be applied here because: (1) claim preclusion does not apply to all administrative actions; (2) the original exemption orders were based upon a mistaken understanding of the law; (3) promissory estoppel does not apply to government tax matters; and (4) Kansas tax policies require that counties have authority to rectify tax errors. And while some of these principles are true under different circumstances, none of these exceptions apply in this case, predominately because the County is attempting to relitigate tax determinations for the same tax years. Each argument is addressed below.