Civil Procedure Keyed to Marcus
Federated Department Stores, Inc. v. Moitie
The district court dismissed all seven suits in their entirety because they had not suffered harm to their business or property within the meaning of the federal antitrust statute. The dismissal is referred to as Moitie I and Brown I. Five of the seven appealed. Moite and Brown did not appeal, but refiled their case in state court, Moite II and Brown II. Their actions were removed to federal court and then dismissed on res judicata grounds. The original action involving the other five Plaintiffs was reversed and remanded to the district court to be reconsidered in light of the recent decision in Reiter v. Sonotone. Moite II and Brown II was eventually appealed to the United States Court of Appeals for the Ninth Circuit. The court of appeals held that the application of res judicata would normally preclude the second action, however, an exception should be made when the original dismissal was based on a case that had been overruled. Essentially, the court reversed, refusing to apply res judicata based on grounds of “simple justice” and public policy.
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