The Utah Court of appeals held that signing and negotiating the two contracts at the same time made the second contract susceptible to a collateral estopple claim based on prior litigation of the first contract. Images was not happy with the performance of the products supplied by the supplier, but lost an arbitration hearing where a final decision was made finding Images liable for breach of contract. Images claimed fraudulent inducement into both contracts, and were both negotiated by the same person. The Court of Appeals held that because both contracts had substantially the same formation, Macris was already given the opportunity to contest their fraudulent inducement claims, and should be barred by collateral estopple from further opportunities to litigate the issue.
The case and case summary are also available at: http://www.mlmlegal.com/legal-cases/Macris&Associates_v_Images&Attitude.php
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