State Farm Fire & Casualty Co. v. Reuter

This case involves collateral estoppel. “Collateral estoppel” is a term which describes these results: When an issue of ultimate fact has been determined by a valid and final judgment, that determination also settles the same issue in another action (a) between the same parties on a different claim, and (b) against persons who are so closely identified with a party that they are said to be “in privity” with parties to the earlier civil action.

Here, the dispute involves two parties, neither of whom was a party to the earlier litigation. 1 State Farm Fire and Casualty Co. (State Farm),…