Guam Bar Practice Questions - Guam Bar Examination (NextGen UBE) Exam

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After a final judgment on the merits in a contract dispute, the losing plaintiff files a second suit against the same defendant arising from the same transaction, asserting a new legal theory not raised in the first case. The defendant raises claim preclusion. How should the court rule?

The second suit is permitted because it asserts a different legal theory The second suit is permitted because issue preclusion does not apply to new theories The second suit is barred only if the new theory was actually litigated The second suit is barred by res judicata (claim preclusion) because it arises from the same transaction and could have been raised earlier

Correct Answer:

The second suit is barred by res judicata (claim preclusion) because it arises from the same transaction and could have been raised earlier

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