Dan Ryan Builders v. Crystal Ridge Development, Inc.

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In a state court proceeding, federal rules of res judicata or claim preclusion dictate the preclusive effect of a federal court judgment on a federal question, but for a federal court judgment applying state law, that state’s rules of res judicata or claim preclusion dictate the preclusive effect of the judgment. In these consolidated appeals, the Supreme Court examined the res judicata effect of a federal court judgment on a state court third-party complaint. The circuit court dismissed the third-party complaint on res judicata grounds. The Supreme Court affirmed, holding that the third-party complaint was barred by res judicata because both the federal action and state action relied upon the same facts and were virtually identical in terms of time, space and origin. View "Dan Ryan Builders v. Crystal Ridge Development, Inc." on Justia Law