Collateral estoppel, sometimes referred to as “issue preclusion,” is a legal doctrine that prevents a party from relitigating an issue they have already litigated in a previous court proceeding. This term applies in civil litigation or arbitration and prevents litigants from having to litigate the same dispute in multiple proceedings.
In order for collateral estoppel to be invoked, three elements must exist:
- Identity of issues: The issue and evidence must be the same in both proceedings.
- Final and valid judgment: The issue must have been decided by a valid and final judgment.
- Necessary for decision: The issue must have been necessary for the court’s final decision.
An example of collateral estoppel would be in a personal injury case. Suppose a person is injured at work and brings a lawsuit against their employer. During the course of litigation, a court will consider who is liable for the injuries and make a final judgment. However, once that judgment is rendered, the person cannot bring the same issue of liability to another court; the original judgment is binding and determinative.
In another example, suppose a consumer brings a lawsuit against a manufacturing company. During the course of the litigation, the court finds that a product defect did not exist, and the consumer is denied a judgment. This judgment is binding if the consumer brings a similar lawsuit against the manufacturer, arguing a product defect. In this case, the consumer would be precluded by collateral estoppel.
Collateral estoppel may be invoked in order to save time and ensure consistency of judgment. It is an important legal concept that ensures fairness in civil litigation, arbitration and other court proceedings.