What is collateral estoppel (issue preclusion) and its elements?

• A. Final judgment, identical issue, actually litigated, and fully and fairly litigated.
• B. Final judgment, different issue, not actually litigated.
• C. Any prior decision, regardless of issue.
• D. Two parties involved.

Answer: (A)

Collateral estoppel (issue preclusion) stops relitigation of a specific issue because it was actually litigated and essential to a prior final judgment. The four key elements are: a final judgment on the merits in the earlier case; the issue in the later case is identical to the issue litigated before; the issue was actually litigated in the prior action; and the prior action provided a full and fair opportunity to litigate the issue.

The best description matches these elements: a final judgment on the merits, the same issue, actually litigated, and fully and fairly litigated. If the issue in the later case isn’t identical or wasn’t actually litigated, collateral estoppel doesn’t apply. A prior decision that doesn’t address the issue, or a situation with only two parties regardless of these factors, likewise doesn’t fit the doctrine.