Toucey v. New York Life Insurance

The controlling issue in both the Toucey and the Phoenix Finance cases is the power of a federal court to pro*142tect those who have obtained its decrees against an effort to force relitigation of the same causes of action in the state courts. Questions of res judicata seem inapposite for the conclusion. We are not concerned in either case with the effect of the decrees if and when they might be pleaded in the state actions. Since federal jurisdiction in each case depended upon diversity, their effect as a pleaded bar to recovery in the state suits would depend upon the faith and credit by law or…