Car Carriers, Inc. v. Ford Motor Company
United States Court of Appeals for the Seventh Circuit
789 F.2d 589 (7th Cir. 1989)
Car Carriers, Inc. (Car Carriers) (plaintiff) sued Ford Motor Company (Ford) and Nu-Car Carriers (defendants) in 1982 for antitrust violations and related state-law claims, alleging Ford induced Car Carriers to invest in new equipment by promising higher rates and more business, then reneged and terminated the relationship; the district court dismissed the sole federal antitrust claim with prejudice and declined pendent jurisdiction over the state claims, dismissing the entire 1982 suit, a ruling affirmed on appeal. In 1983, Car Carriers sued the same defendants again, this time alleging racketeering and Interstate Commerce Act violations plus similar state-law claims stemming from the same underlying business relationship; the district court dismissed the entire second suit as barred by res judicata, and Car Carriers appealed.
Whether a court must dismiss a party's claim if it arises from the same set of underlying facts as a claim the party has previously litigated to final judgment.