AL Bar Practice Questions - Alabama Bar Examination Exam

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A federal district court enters final judgment on the merits in favor of the defendant. The plaintiff then files a second suit against the same defendant asserting a different legal theory but arising from the same transaction. Under claim preclusion (res judicata), what is the result?

The second suit is barred, because claim preclusion bars relitigation of claims that were or could have been raised arising from the same transaction The second suit may proceed because it uses a different legal theory The second suit is barred only if the parties stipulate Claim preclusion never applies to federal judgments

Correct Answer:

The second suit is barred, because claim preclusion bars relitigation of claims that were or could have been raised arising from the same transaction

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