Crucial Exams

Multistate Bar Examination Practice Question

A plaintiff files a lawsuit in federal court against a defendant, alleging breach of contract. The court reaches a judgment on the merits, holding that the defendant did not breach the contract. Five months later, the plaintiff files a new lawsuit in a different federal court against the same defendant, alleging fraudulent inducement related to the same contract. The defendant moves to dismiss, arguing the lawsuit is barred. How should the court rule?

  • The court should deny the motion to dismiss because the new case involves a different legal theory than the prior case.

  • The court should deny the motion to dismiss because fraudulent inducement was not specifically addressed in the prior judgment.

  • The court should grant the motion to dismiss because issue preclusion bars the plaintiff from retrying whether the contract was breached.

  • The court should grant the motion to dismiss because the claim arises from the same transaction and could have been litigated in the prior case.

Multistate Bar Examination
Civil Procedure
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