Columbia Mutual Insurance Company, Formerly Known as Columbia Mutual Casualty Insurance Company v. Fiesta Mart, Inc.

BARKSDALE, Circuit Judge:

Columbia Mutual Insurance Company appeals the summary judgment awarded its insured, Fiesta Mart, Inc., in Columbia’s declaratory judgment action on its liability (coverage) for a state court judgment against Fiesta. Because the state court findings in issue — incorporating coverage terms from the Columbia policy — were not essential to the state court judgment, and because privity is lacking between Columbia and Fiesta, Columbia is not collaterally estopped from relitigating those findings. And, because the Columbia policy does not cover the damages awarded by the…