Collateral estoppel is not a commonly known term, but it is critical in the legal world. Just 3 days ago the Minnesota Court of Appeals applied collateral estoppel in a manner sounding in res judicata to prevent a neighborhood group from disputing a massive new apartment building. Collateral estoppel can keep you from litigating claims and extremely commonly used as an affirmative defense to initial suits. So common in fact, that I'd estimate 99% of all answers include it as an affirmative defense.
Collateral estoppel is defined as Collateral estoppel bars the relitigation of an issue when:
(1) the issue is identical to one in a prior adjudication;
(2) there was a final judgment on the merits in the prior proceeding;
(3) the estopped party was a party or in privity with a party to the prior
adjudication; and
(4) the estopped party was given a full and fair opportunity to be heard on the adjudicated issue.
In addition to these four factors, at the deciding court must be convinced that its application is "fair."
What does this mean for you? In simple terms, when you are faced with a claim, you must present all your available claims or you risk never being able to present them. So, don't sign a settlement agreement or settle claims before you understand the merit and value of your claims. Doing so could very well keep you from ever getting what you deserve.
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