Opinion ID: 2058658
Heading Depth: 2
Heading Rank: 2

Heading: Collateral Estoppel, or Issue Preclusion

Text: Even if the claim on appeal had not been barred by the principle of claim preclusion, we are satisfied that relitigation of the particular issues of this case would be blocked by issue preclusion. Under this doctrine, a right, question, or fact distinctly put in issue and directly determined by a court of competent jurisdiction, as a ground of recovery, cannot be disputed in a subsequent suit between the same parties or their privies; and, even if the second suit is for a different cause of action, the right, question, or fact once so determined must, as between the same parties or their privies, be taken as conclusively established, so long as the judgment in the first suit remains unmodified. Southern Pacific Railroad Co. v. United States, 168 U.S. 1, 48-49, 18 S.Ct. 18, 27, 42 L.Ed. 355 (1897); see also Henderson, supra, 439 A.2d at 485; Habib, supra, 286 A.2d at 855-56. In order for issue preclusion to apply, the issue in the new case must be one that was actually litigated and decided in the prior case, by a final and valid disposition on the merits, after a full and fair opportunity for litigation by the same parties or their privies, where the issue was necessarily decided in disposing of the first action, and not mere dictum. WRIGHT, MILLER & COOPER, FEDERAL PRACTICE & PROCEDURE: Jurisdiction, supra note 3, § 4416. Regardless of the identity or difference between the underlying claims, issue preclusion operates to bar relitigation of identical issues actually decided between the parties or their privies. Jackson v. District of Columbia, 412 A.2d 948, 953-54 (D.C.1980). As we have already determined, all of the parties to this action are identical to, or in privity with, the counterclaimants in the Maryland suit. Moreover, the central issues of fact and law in this appeal, whether or not the $300,000 purchase of real property by appellee Jenkins was executed before the formation of the Herring Landing partnership, and if so, whether he had any fiduciary duties to the as yet nonexistent partnership at that time, were actually put in issue and necessarily decided in appellees' favor by the Maryland court. This decision was final, valid on the merits, necessary to the outcome, and made only after all interested parties had a full and fair opportunity to litigate and appeal the matter. Smith's nonparticipation in that suit does not negate the fact that he was in privity with parties who actually represented his interests (or otherwise lacks an interest to litigate). The issues precluded by virtue of the Maryland litigation comprise the crux of the current appeal. Compelled as we are to recognize and heed the Maryland judgment, we must conclude that appellee Jenkins purchased the West Ocean City realty for $300,000 before the formation of the Herring Landing partnership, and at that time bore no fiduciary duties to the partnership. Accordingly, there was no breach, fraud, or misrepresentation in appellees' conduct of the matter. This is, of course, the entire claim in dispute before us. Since these issues of fact and law were already conclusively decided, the Superior Court properly dismissed the action on appellees' motion.