Daewoo Electronics America v. Opta Corp.

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Under New Jersey's traditional res judicata doctrine, a claim asserting breach of a contractual guarantee of a third party's debt does not preclude later alter ego and successor liability claims to collect the debt directly from entities related to the debtor. Further, although New Jersey's procedural joinder rules may require such claims to be joined in a single action, New Jersey law declines to impose these rules on other courts. The Ninth Circuit reversed the district court's dismissal of most of Daewoo's claims as barred by a prior judgment of the United States District Court for the District of New Jersey. In this case, the district court failed to apply New Jersey law correctly and erred in ruling that the claims in the present action were precluded under New Jersey law. View "Daewoo Electronics America v. Opta Corp." on Justia Law