Multistate Bar Examination Practice Question

The doctrine of claim preclusion (also known as res judicata) prevents a party from pursuing subsequent litigation based on the same transaction or occurrence that was the subject of a prior lawsuit, provided three requirements are met: (1) a valid, final judgment on the merits was rendered in the first case, (2) the parties in both lawsuits are the same or in privity, and (3) the claims could have been brought in the prior action. In this scenario, claim preclusion applies because the second lawsuit arises from the same underlying conduct (the car accident) and could have been addressed in the original negligence case. Issue preclusion (collateral estoppel), on the other hand, applies only to specific issues that were actually litigated and decided in the prior lawsuit. While both doctrines are related, claim preclusion bars the entire claim, not just individual issues. The other answers misapply these rules.