Arbitration, Collateral Estoppel: Collateral Estoppel Effect Of Arbitration Decision Results In Affirmance Of Trial Court Order Sustaining Demurrer To Amended Complaint

Tip From Appellate Justices:  Address The Basis Of The Trial Court’s Ruling When You Appeal.

     The trial court sustained a demurrer of respondent Sabet to appellant Kavandi’s first amended cross-complaint, without leave to amend, leading to this appeal.   Sabet v. Kavandi, No. G050886 (4/3 May 23, 2016) (Bedsworth, Aronson, Thompson) (unpublished).  Unfortunately for appellant, a previous final binding arbitration decision encompassed the issues of the cross-complaint, dooming the appeal:  “Because Kavandi failed to address the basis of the trial court’s ruling on the demurrer – a conclusive bar to her cross-complaint – we affirm the judgment of dismissal.” 

     Collateral Estoppel and Res Judicata.  Justice Bedsworth reminds us that the California Supreme Court “admonished one and all to stop throwing the term ‘res judicata’ around without due consideration for its true meaning . . . “  Res judicata applies to claim preclusion, whereas issue preclusion prohibits relitigation of the same issue.  The distinction matters because “claim preclusion applies only between the same parties or their privities, while issue preclusion (the former collateral estoppel) is not so restricted.”  Footnote 2.

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