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Claim Preclusion (Res Judicata): What does it bar?
The entire second lawsuit is barred
Issue Preclusion (Collateral Estoppel): What does it bar?
Specific factual or legal issues already decided cannot be re-argued
Claim Preclusion (Res Judicata): What does it cover?
Covers all claims that were raised OR COULD HAVE BEEN raised in the first case.
Issue Preclusion (Collateral Estoppel): What does it cover?
Applies even in a different lawsuit between different (or the same) parties
What’s the policy rationale behind preclusion?
(1) Efficiency — combine related claims into one case.
(2) Consistency — prevent courts from reaching contradictory decisions on the same facts
(3) Finality & Reliance — parties need to arrange their affairs without the threat of endless re-litigation. ("With broad pleading comes broad preclusion.")