Lucky Brand Dungarees, Inc. v. Marcel Fashions Group, Inc.
Supreme Court of the United States5/14/2020
AI Case Brief
Generate an AI-powered case brief with:
đKey Facts
âïžLegal Issues
đCourt Holding
đĄReasoning
đŻSignificance
Estimated cost: $0.10â$0.50 per brief, depending on opinion length and retries
Full Opinion
(Slip Opinion) OCTOBER TERM, 2019 1 Syllabus NOTE: Where it is feasible, a syllabus (headnote) will be released, as is being done in connection with this case, at the time the opinion is issued. The syllabus constitutes no part of the opinion of the Court but has been prepared by the Reporter of Decisions for the convenience of the reader. See United States v. Detroit Timber & Lumber Co., 200 U. S. 321, 337. SUPREME COURT OF THE UNITED STATES Syllabus LUCKY BRAND DUNGAREES, INC., ET AL. v. MARCEL FASHIONS GROUP, INC. CERTIORARI TO THE UNITED STATES COURT OF APPEALS FOR THE SECOND CIRCUIT No. 18â1086. Argued January 13, 2020âDecided May 14, 2020 Petitioners (collectively Lucky Brand) and respondent (Marcel) both use the word âLuckyâ as part of their marks on jeans and other apparel. Marcel received a trademark registration for the phrase âGet Lucky,â and Lucky Brand uses the registered trademark âLucky Brandâ and other marks with the word âLucky.â This has led to nearly 20 years of litigation, proceeding in three rounds. The first round resulted in a 2003 settlement agreement in which Lucky Brand agreed to stop using the phrase âGet Luckyâ and Marcel agreed to release any claims re- garding Lucky Brandâs use of its own trademarks. In the second round (2005 Action), Lucky Brand sued Marcel and its licensee for violating its trademarks. Marcel filed several counterclaims turning, as rele- vant here, on Lucky Brandâs alleged continued use of âGet Lucky,â but it did not claim that Lucky Brandâs use of its own marks alone in- fringed the âGet Luckyâ mark. In both a motion to dismiss the coun- terclaims and an answer to them, Lucky Brand argued that the coun- terclaims were barred by the settlement agreement, but it did not invoke that defense later in the proceedings. The court in the 2005 Action permanently enjoined Lucky Brand from copying or imitating Marcelâs âGet Luckyâ mark, and a jury found against Lucky Brand on Marcelâs remaining counterclaims. In the third round (2011 Action), Marcel sued Lucky Brand for continuing to infringe the âGet Luckyâ mark, but it did not reprise its 2005 allegation about Lucky Brandâs use of the âGet Luckyâ phrase. After protracted litigation, Lucky Brand moved to dismiss, arguingâfor the first time since early in the 2005 Actionâthat Marcel had released its claims in the settlement agreement. Marcel countered that Lucky Brand could not invoke the release defense because it could have pursued that defense in the 2005 2 LUCKY BRAND DUNGAREES, INC. v. MARCEL FASHIONS GROUP, INC. Syllabus Action but did not. The District Court granted Lucky Brandâs motion to dismiss. The Second Circuit vacated and remanded, concluding that âdefense preclusionâ prohibited Lucky Brand from raising an unliti- gated defense that it should have raised earlier. Held: Because Marcelâs 2011 Action challenged different conductâand raised different claimsâfrom the 2005 Action, Marcel cannot preclude Lucky Brand from raising new defenses. Pp. 6â12. (a) This case asks whether so-called âdefense preclusionâ is a valid application of res judicata: a term comprising the doctrine of issue pre- clusion, which precludes a party from relitigating an issue actually de- cided in a prior action and necessary to the judgment, and the doctrine of claim preclusion, which prevents parties from raising issues that could have been raised and decided in a prior action. Any preclusion of defenses must, at a minimum, satisfy the strictures of issue preclu- sion or claim preclusion. See, e.g., Davis v. Brown, 94 U. S. 423, 428. Here, issue preclusion does not apply, so the causes of action must share a âcommon nucleus of operative fact[s]â for claim preclusion to apply, Restatement (Second) of Judgments §24, Comment b, p. 199. Pp. 6â8. (b) Because the two suits here involved different marks and differ- ent conduct occurring at different times, they did not share a âcommon nucleus of operative facts.â The 2005 claims depended on Lucky Brandâs alleged use of âGet Lucky.â But in the 2011 Action, Marcel alleged that the infringement was Lucky Brandâs use of its other marks containing the word âLucky,â not any use of âGet Luckyâ itself. The conduct in the 2011 Action also occurred after the conclusion of the 2005 Action. But claim preclusion generally â âdoes not bar claims that are predicated on events that postdate the filing of the initial com- plaint,â â Whole Womanâs Health v. Hellerstedt, 579 U. S. ___, ___, be- cause events occurring after a plaintiff files suit often give rise to new âoperative factsâ creating a new claim to relief. Pp. 8â10. (c) Marcel claims that treatises and this Courtâs cases support a ver- sion of âdefense preclusionâ that extends to the facts of this case. But none of those authorities describe scenarios applicable here, and they are unlikely to stand for anything more than that traditional claim or issue preclusion principles may bar defenses raised in a subsequent suitâprinciples that do not bar Lucky Brandâs release defense here. Pp. 10â12. 898 F. 3d 232, reversed and remanded. SOTOMAYOR, J., delivered the opinion for a unanimous Court. Cite as: 590 U. S. ____ (2020) 1 Opinion of the Court NOTICE: This opinion is subject to formal revision before publication in the preliminary print of the United States Reports. Readers are requested to notify the Reporter of Decisions, Supreme Court of the United States, Wash- ington, D. C. 20543, of any typographical or other formal errors, in order that corrections may be made before the preliminary print goes to press. SUPREME COURT OF THE UNITED STATES _________________ No. 18â1086 _________________ LUCKY BRAND DUNGAREES, INC., ET AL., PETITIONERS v. MARCEL FASHIONS GROUP, INC. ON WRIT OF CERTIORARI TO THE UNITED STATES COURT OF APPEALS FOR THE SECOND CIRCUIT [May 14, 2020] JUSTICE SOTOMAYOR delivered the opinion of the Court. This case arises from protracted litigation between peti- tioners Lucky Brand Dungarees, Inc., and others (collec- tively Lucky Brand) and respondent Marcel Fashions Group, Inc. (Marcel). In the latest lawsuit between the two, Lucky Brand asserted a defense against Marcel that it had not pressed fully in a preceding suit between the parties. This Court is asked to determine whether Lucky Brandâs failure to litigate the defense in the earlier suit barred Lucky Brand from invoking it in the later suit. Because the parties agree that, at a minimum, the preclusion of such a defense in this context requires that the two suits share the same claim to reliefâand because we find that the two suits here did notâLucky Brand was not barred from raising its defense in the later action. I Marcel and Lucky Brand both sell jeans and other ap- parel. Both entities also use the word âLuckyâ as part of their marks on clothing. In 1986, Marcel received a federal trademark registration for âGet Luckyâ; a few years later, 2 LUCKY BRAND DUNGAREES, INC. v. MARCEL FASHIONS GROUP, INC. Opinion of the Court in 1990, Lucky Brand began selling apparel using the reg- istered trademark âLucky Brandâ and other marks that in- clude the word âLucky.â 779 F. 3d 102, 105 (CA2 2015). Three categories of marks are at issue in this case: Mar- celâs âGet Luckyâ mark; Lucky Brandâs âLucky Brandâ mark; and various other marks owned by Lucky Brand that contain the word âLucky.â These trademarks have led to nearly 20 years of litigation between the two companies, proceeding in three rounds. A In 2001âthe first roundâMarcel sued Lucky Brand, al- leging that Lucky Brandâs use of the phrase âGet Luckyâ in advertisements infringed Marcelâs trademark. In 2003, the parties signed a settlement agreement. As part of the deal, Lucky Brand agreed to stop using the phrase âGet Lucky.â App. 191. In exchange, Marcel agreed to release any claims regarding Lucky Brandâs use of its own trademarks. Id., at 191â192. B The ink was barely dry on the settlement agreement when, in 2005, the parties began a second round of litiga- tion (2005 Action). Lucky Brand filed suit, alleging that Marcel and its licensee violated its trademarks by copying its designs and logos in a new clothing line. As relevant here, Marcel filed several counterclaims that all turned, in large part, on Lucky Brandâs alleged continued use of âGet Luckyâ: One batch of allegations asserted that Lucky Brand had continued to use Marcelâs âGet Luckyâ mark in viola- tion of the settlement agreement, while others alleged that Lucky Brandâs use of the phrase âGet Luckyâ and âLucky Brandâ together was âconfusingly similar toââand thus in- fringedââMarcelâs âGet Luckyâ mark. Defendantsâ Answer, Affirmative Defenses, and Counterclaims to Plaintiffsâ Complaint in No. 1:05âcvâ06757 (SDNY), Doc. 40â2, p. 39; Cite as: 590 U. S. ____ (2020) 3 Opinion of the Court see id., at 34â41. None of Marcelâs counterclaims alleged that Lucky Brandâs use of its own marks aloneâi.e., inde- pendent of any alleged use of âGet Luckyââinfringed Mar- celâs âGet Luckyâ mark. Lucky Brand moved to dismiss the counterclaims, alleg- ing that they were barred by the release provision of the settlement agreement. After the District Court denied the motion without prejudice, Lucky Brand noted the release defense once more in its answer to Marcelâs counterclaims. But as the 2005 Action proceeded, Lucky Brand never again invoked the release defense. The 2005 Action concluded in two phases. First, as a sanction for misconduct during discovery, the District Court concluded that Lucky Brand violated the settlement agreement by continuing to use âGet Luckyâ and perma- nently enjoined Lucky Brand from copying or imitating Marcelâs âGet Luckyâ mark. Order Granting Partial Sum- mary Judgment and Injunction in No. 1:05âcvâ06757, Doc. 183; see also App. 203â204. The injunction did not enjoin, or even mention, Lucky Brandâs use of any other marks or phrases containing the word âLucky.â Order Granting Par- tial Summary Judgment and Injunction, Doc. 183. The case then proceeded to trial. The jury found against Lucky Brand on Marcelâs remaining counterclaimsâthose that al- leged infringement from Lucky Brandâs continued use of the âGet Luckyâ catchphrase alongside its own marks. See Brief for Respondent 52. C In April 2011, the third round of litigation began: Marcel filed an action against Lucky Brand (2011 Action), main- taining that Lucky Brand continued to infringe Marcelâs âGet Luckyâ mark and, in so doing, contravened the judg- ment issued in the 2005 Action. This complaint did not reprise Marcelâs earlier allegation (in the 2005 Action) that Lucky Brand continued to use the 4 LUCKY BRAND DUNGAREES, INC. v. MARCEL FASHIONS GROUP, INC. Opinion of the Court âGet Luckyâ phrase. Marcel argued only that Lucky Brandâs continued, post-2010 use of Lucky Brandâs own marksâsome of which used the word âLuckyââinfringed Marcelâs âGet Luckyâ mark in a manner that (according to Marcel) was previously found infringing.1 Marcel requested that the District Court enjoin Lucky Brand from using any of Lucky Brandâs marks containing the word âLucky.â The District Court granted Lucky Brand summary judg- ment, concluding that Marcelâs claims in the 2011 Action were essentially the same as its counterclaims in the 2005 Action. But the Court of Appeals for the Second Circuit disa- greed. 779 F. 3d 102. The court concluded that Marcelâs claims in the 2011 Action were distinct from those it had asserted in the 2005 Action, because the claims at issue in the 2005 Action were âfor earlier infringements.â Id., at 110. As the court noted, â[w]inning a judgment . . . does not deprive the plaintiff of the right to sueâ for the defendantâs âsubsequent similar violations.â Id., at 107. The Second Circuit further rejected Marcelâs request to hold Lucky Brand in contempt for violating the injunction issued in the 2005 Action. The court noted that the conduct at issue in the 2011 Action was Lucky Brandâs use of its own marksânot the use of the phrase âGet Lucky.â By contrast, the 2005 injunction prohibited Lucky Brand from using the âGet Luckyâ markânot Lucky Brandâs own marks that hap- pened to contain the word âLucky.â Id., at 111. Moreover, the court reasoned that the jury in the 2005 Action had been ââââââ 1 See Complaint for Injunctive Relief and Trademark Infringement in No. 1:11âcvâ05523 (SDNY), Doc. 1, ¶15 (âDespite the entry of the [2005 Action judgment], [Lucky Brand] ha[s] continued to willfully . . . infringe [Marcelâs] GET LUCKY mark by using the Lucky Brand marks in the identical manner and form and on the same goods for which [it] w[as] found liable for infringementâ); id., ¶20 (âDespite the entry of theâ 2005 Action judgment, Lucky Brand has âcontinued its uninterrupted and willful use of the Lucky Brand marks and any other trademarks includ- ing the word âLuckyâ â). Cite as: 590 U. S. ____ (2020) 5 Opinion of the Court âfree to find infringement of Marcelâs âGet Luckyâ mark based solely on Lucky Brandâs use of [the phrase] âGet Lucky.â â Id., at 112. The court vacated and remanded for further proceedings. On remand to the District Court, Lucky Brand moved to dismiss, arguingâfor the first time since its motion to dis- miss and answer in the 2005 Actionâthat Marcel had re- leased its claims by entering the settlement agreement. Marcel countered that Lucky Brand was precluded from in- voking the release defense, because it could have pursued the defense fully in the 2005 Action but had neglected to do so. The District Court granted Lucky Brandâs motion to dis- miss, holding that it could assert its release defense and that the settlement agreement indeed barred Marcelâs claims. The Second Circuit vacated and remanded, concluding that a doctrine it termed âdefense preclusionâ prohibited Lucky Brand from raising the release defense in the 2011 Action. 898 F. 3d 232 (2018). Noting that a different cate- gory of preclusionâissue preclusionâmay be wielded against a defendant, see Parklane Hosiery Co. v. Shore, 439 U. S. 322 (1979), the court reasoned that the same should be true of claim preclusion: A defendant should be pre- cluded from raising an unlitigated defense that it should have raised earlier. The panel then held that âdefense pre- clusionâ bars a party from raising a defense where: â(i) a previous action involved an adjudication on the meritsâ; â(ii) the previous action involved the same partiesâ; â(iii) the de- fense was either asserted or could have been asserted, in the prior actionâ; and â(iv) the district court, in its discre- tion, concludes that preclusion of the defense is appropri- ate.â 898 F. 3d, at 241. Finding each factor satisfied in this case, the panel vacated the District Courtâs judgment. We granted certiorari, 588 U. S. ___ (2019), to resolve differ- ences among the Circuits regarding when, if ever, claim 6 LUCKY BRAND DUNGAREES, INC. v. MARCEL FASHIONS GROUP, INC. Opinion of the Court preclusion applies to defenses raised in a later suit. Com- pare 898 F. 3d, at 241, with Hallco Mfg. Co. v. Foster, 256 F. 3d 1290, 1297â1298 (CA Fed. 2001); McKinnon v. Blue Cross and Blue Shield of Alabama, 935 F. 2d 1187, 1192 (CA11 1991). II A This case asks whether so-called âdefense preclusionâ is a valid application of res judicata: a term that now comprises two distinct doctrines regarding the preclusive effect of prior litigation. 18 C. Wright, H. Miller, & E. Cooper, Fed- eral Practice and Procedure §4402 (3d ed. 2016) (Wright & Miller). The first is issue preclusion (sometimes called col- lateral estoppel), which precludes a party from relitigating an issue actually decided in a prior case and necessary to the judgment. Allen v. McCurry, 449 U. S. 90, 94 (1980); see Parklane Hosiery, 439 U. S., at 326, n. 5. The second doctrine is claim preclusion (sometimes itself called res judicata). Unlike issue preclusion, claim preclu- sion prevents parties from raising issues that could have been raised and decided in a prior actionâeven if they were not actually litigated. If a later suit advances the same claim as an earlier suit between the same parties, the ear- lier suitâs judgment âprevents litigation of all grounds for, or defenses to, recovery that were previously available to the parties, regardless of whether they were asserted or de- termined in the prior proceeding.â Brown v. Felsen, 442 U. S. 127, 131 (1979); see also Wright & Miller §4407. Suits involve the same claim (or âcause of actionâ) when they â âaris[e] from the same transaction,â â United States v. Tohono Oâodham Nation, 563 U. S. 307, 316 (2011) (quoting Kremer v. Chemical Constr. Corp., 456 U. S. 461, 482, n. 22 (1982)), or involve a âcommon nucleus of operative facts,â Restatement (Second) of Judgments §24, Comment b, p. 199 (1982) (Restatement (Second)). Cite as: 590 U. S. ____ (2020) 7 Opinion of the Court Put another way, claim preclusion âdescribes the rules formerly known as âmergerâ and âbar.â â Taylor v. Sturgell, 553 U. S. 880, 892, n. 5 (2008). âIf the plaintiff wins, the entire claim is merged in the judgment; the plaintiff cannot bring a second independent action for additional relief, and the defendant cannot avoid the judgment by offering new defenses.â Wright & Miller §4406. But â[i]f the second law- suit involves a new claim or cause of action, the parties may raise assertions or defenses that were omitted from the first lawsuit even though they were equally relevant to the first cause of action.â Ibid. As the Second Circuit itself seemed to recognize, see 898 F. 3d, at 236â237, this Court has never explicitly recognized âdefense preclusionâ as a standalone category of res judi- cata, unmoored from the two guideposts of issue preclusion and claim preclusion. Instead, our case law indicates that any such preclusion of defenses must, at a minimum, sat- isfy the strictures of issue preclusion or claim preclusion. See, e.g., Davis v. Brown, 94 U. S. 423, 428 (1877) (holding that where two lawsuits involved different claims, preclu- sion operates âonly upon the matter actually at issue and determined in the original actionâ).2 The parties thus agree that where, as here, issue preclusion does not apply, a de- fense can be barred only if the âcauses of action are the ââââââ 2 There may be good reasons to question any application of claim pre- clusion to defenses. It has been noted that in suits involving successive claims against the same defendant, courts often âassum[e] that the de- fendant may raise defenses in the second action that were not raised in the first, even though they were equally available and relevant in both actions.â Wright & Miller §4414. This is because â[v]arious considera- tions, other than actual merits, may governâ whether to bring a defense, âsuch as the smallness of the amount or the value of the property in con- troversy, the difficulty of obtaining the necessary evidence, the expense of the litigation, and [a partyâs] own situation.â Cromwell v. County of Sac, 94 U. S. 351, 356 (1877). Here, however, this Court need not deter- mine when (if ever) applying claim preclusion to defenses may be appro- priate, because a necessary predicateâidentity of claimsâis lacking. 8 LUCKY BRAND DUNGAREES, INC. v. MARCEL FASHIONS GROUP, INC. Opinion of the Court sameâ in the two suitsâthat is, where they share a â âcom- mon nucleus of operative fact[s].â â Brief for Respondent 2, 27, 31, 50; accord, Reply Brief 3. B Put simply, the two suits here were grounded on different conduct, involving different marks, occurring at different times. They thus did not share a âcommon nucleus of oper- ative facts.â Restatement (Second) §24, Comment b, at 199. To start, claims to relief may be the same for the purposes of claim preclusion if, among other things, â âa different judgment in the second action would impair or destroy rights or interests established by the judgment entered in the first action.â â Wright & Miller §4407. Here, however, the 2011 Action did not imperil the judgment of the 2005 Action because the lawsuits involved both different conduct and different trademarks. In the 2005 Action, Marcel alleged that Lucky Brand in- fringed Marcelâs âGet Luckyâ mark both by directly imitat- ing its âGet Luckyâ mark and by using the âGet Luckyâ slo- gan alongside Lucky Brandâs other marks in a way that created consumer confusion. Brief for Respondent 52. Mar- cel appears to admit, thus, that its claims in the 2005 Action depended on Lucky Brandâs alleged use of âGet Lucky.â Id., at 9â10 (âMarcelâs reverse-confusion theory [in the 2005 Ac- tion] depended, in part, on Luckyâs continued imitation of the GET LUCKY markâ). By contrast, the 2011 Action did not involve any alleged use of the âGet Luckyâ phrase. Indeed, Lucky Brand had been enjoined in the 2005 Action from using âGet Lucky,â and in the 2011 Action, Lucky Brand was found not to have violated that injunction. 779 F. 3d, at 111â112. The parties thus do not argue that Lucky Brand continued to use âGet Luckyâ after the 2005 Action concluded, and at oral argu- ment, counsel for Marcel appeared to confirm that Marcelâs claims in the 2011 Action did not allege that Lucky Brand Cite as: 590 U. S. ____ (2020) 9 Opinion of the Court continued to use âGet Lucky.â Tr. of Oral Arg. 46. Instead, Marcel alleged in the 2011 Action that Lucky Brand com- mitted infringement by using Lucky Brandâs own marks containing the word âLuckyâânot the âGet Luckyâ mark it- self. Plainly, then, the 2011 Action challenged different conduct, involving different marks. Not only that, but the complained-of conduct in the 2011 Action occurred after the conclusion of the 2005 Action. Claim preclusion generally âdoes not bar claims that are predicated on events that postdate the filing of the initial complaint.â Whole Womanâs Health v. Hellerstedt, 579 U. S. ___, ___ (2016) (slip op., at 12) (internal quotation marks omitted); Lawlor v. National Screen Service Corp., 349 U. S. 322, 327â328 (1955) (holding that two suits were not âbased on the same cause of action,â because â[t]he conduct pres- ently complained of was all subsequent toâ the prior judg- ment and it âcannot be given the effect of extinguishing claims which did not even then exist and which could not possibly have been sued upon in the previous caseâ). This is for good reason: Events that occur after the plaintiff files suit often give rise to new â[m]aterial operative factsâ that âin themselves, or taken in conjunction with the antecedent facts,â create a new claim to relief. Restatement (Second) §24, Comment f, at 203; 18 J. Moore, D. Coquillette, G. Jo- seph, G. Vairo, & C. Varner, Federal Practice §131.22[1], p. 131â55, n. 1 (3d ed. 2019) (citing cases where â[n]ew facts create[d a] new claimâ). This principle takes on particular force in the trademark context, where the enforceability of a mark and likelihood of confusion between marks often turns on extrinsic facts that change over time. As Lucky Brand points out, liability for trademark infringement turns on marketplace realities that can change dramatically from year to year. Brief for Petitioners 42â45. It is no surprise, then, that the Second Circuit held that Marcelâs 2011 Action claims were not barred by the 2005 Action. By the same token, the 2005 10 LUCKY BRAND DUNGAREES, INC. v. MARCEL FASHIONS GROUP, INC. Opinion of the Court Action could not bar Lucky Brandâs 2011 defenses. At bottom, the 2011 Action involved different marks, dif- ferent legal theories, and different conductâoccurring at different times. Because the two suits thus lacked a âcom- mon nucleus of operative facts,â claim preclusion did not and could not bar Lucky Brand from asserting its settle- ment agreement defense in the 2011 Action. III Resisting this conclusion, Marcel points to treatises and this Courtâs cases, arguing that they support a version of âdefense preclusionâ doctrine that extends to the facts of this case. Brief for Respondent 24â26. But these authori- ties do no such thing. As an initial matter, regardless of what those authorities might imply about âdefense preclu- sion,â none of them describe scenarios applicable here. Moreover, we doubt that these authorities stand for any- thing more than that traditional claim- or issue-preclusion principles may bar defenses raised in a subsequent suitâ principles that, as explained above, do not bar Lucky Brandâs release defense here. Take, for example, cases that involve either judgment en- forcement or a collateral attack on a prior judgment. Id., at 26â35. In the former scenario, a party takes action to en- force a prior judgment already issued against another; in the latter, a party seeks to avoid the effect of a prior judg- ment by bringing a suit to undo it. If, in either situation, a different outcome in the second action âwould nullify the in- itial judgment or would impair rights established in the in- itial action,â preclusion principles would be at play. Re- statement (Second) §22(b), at 185; Wright & Miller §4414. In both scenarios, courts simply apply claim preclusion or issue preclusion to prohibit a claim or defense that would Cite as: 590 U. S. ____ (2020) 11 Opinion of the Court attack a previously decided claim.3 But these principles do not preclude defendants from asserting defenses to new claims, which is precisely what Marcel would have us do here. In any event, judgment-enforcement and collateral-at- tack scenarios are far afield from the circumstances of this case. Lucky Brandâs defense in the 2011 Action did not threaten the judgment issued in the 2005 Action or, as Mar- cel argues, âachieve the same practical resultâ that the above-mentioned principles seek to avoid. Brief for Re- spondent 31â32. Indeed, while the judgment in the 2005 Action plainly prohibited Lucky Brand from using âGet Lucky,â it did not do the same with respect to Lucky Brandâs continued, standalone use of its own marks containing the word âLuckyââthe only conduct at issue in the 2011 Action. Put simply, Lucky Brandâs defense to new claims in the 2011 Action did not risk impairing the 2005 judgment. Nor do cases like Beloit v. Morgan, 7 Wall. 619 (1869), aid Marcel. See Brief for Respondent 32â33. To be sure, Beloit held that a defendant in a second suit over bonds âof the same issueâ was precluded from raising a defense it had not raised in the first suit. 7 Wall., at 620. But the Court there ââââââ 3 One might ask: If any preclusion of defenses (under the claim-preclu- sion rubric) requires identity of claims in two suits, how could the second similar suit have avoided standard claim preclusion in the first place? Different contexts may yield different answers. In a judgment-enforce- ment context, the answer may be that claim preclusion applies only âto a final judgment rendered in an action separate from that in which the doctrine is asserted.â 18 J. Moore, D. Coquillette, G. Joseph, G. Vairo, & C. Varner, Federal Practice §131.31[1], p. 131â116 (3d ed. 2019) (empha- sis added). Thusâalthough claim preclusion does apply to a later, standalone suit seeking relief that could have been obtained in the firstâ it âis not applicable to . . . efforts to obtain supplemental relief in the original action, or direct attacks on the judgment.â Ibid (footnote de- leted). The upshot is thatâeven if a court deems the underlying core of operative facts to be the sameâa plaintiff in that circumstance is not precluded from enforcing its rights with respect to continuing wrongful conduct. 12 LUCKY BRAND DUNGAREES, INC. v. MARCEL FASHIONS GROUP, INC. Opinion of the Court explained that the judgment in the first suit âestablished conclusively the original validity of the securities described in the bill, and the liability of the town to pay them.â Id., at 623. In other words, by challenging the validity of all bonds of the same issue, the defense in the second suit would have threatened the validity of the judgment in the first suit. The same cannot be said of the defense raised in the 2011 Action vis-Ă -vis the judgment in the 2005 Action. * * * At bottom, Marcelâs 2011 Action challenged different con- ductâand raised different claimsâfrom the 2005 Action. Under those circumstances, Marcel cannot preclude Lucky Brand from raising new defenses. The judgment of the Sec- ond Circuit is therefore reversed, and the case is remanded for proceedings consistent with this opinion. It is so ordered.
Case Information
- Court
- Supreme Court of the United States
- Decision Date
- May 14, 2020
- Citation
- 140 S. Ct. 1589
- Status
- Precedential