Legal Definitions - cause-of-action estoppel

Definition: Cause-of-action estoppel is a legal principle that prevents a party from relitigating an issue that has already been decided in a previous lawsuit, even if the new lawsuit involves a different claim. This is also known as collateral estoppel or issue preclusion.

Examples:

• Defensive collateral estoppel: A defendant in a personal injury lawsuit is sued for negligence in causing a car accident. The defendant was previously sued for the same accident by another plaintiff and was found not to be at fault. The defendant can use cause-of-action estoppel to prevent the plaintiff in the current lawsuit from relitigating the issue of fault.
• Offensive collateral estoppel: A plaintiff sues a company for breach of contract. The company had previously been sued by another plaintiff for the same breach of contract and was found to have breached the contract. The plaintiff in the current lawsuit can use cause-of-action estoppel to prevent the company from relitigating the issue of whether it breached the contract.

These examples illustrate how cause-of-action estoppel can be used to prevent parties from relitigating issues that have already been decided in previous lawsuits. This helps to promote judicial efficiency and finality of judgments.