LAW 607 Lecture Notes - Lecture 58: Counterclaim, Res Judicata, W. M. Keck Observatory
Document Summary
In most cases, the common law doctrine of claim preclusion bars claims, not defenses. In certain narrow circumstances, however, the doctrine may also prevent a party from bringing a claim based on the same basic elements of a defense the party should have raised in the prior action. If the jurisdiction in which the first action was litigated had such a rule, it is likely to control the issue. The common law rule asks whether the claim in the second case would nullify the judgment in the first case. If the claim would nullify the judgment by denying the other party certain rights found to exist in the first case, the claim is barred. Few counterclaims nullify the judgment: example: smith hires jones to install a new roof on smith"s house. However, as jones drives away from smith"s house, he negligently drives his truck through smith"s prize rose garden. When smith refuses to pay, jones sues smith for breach.