A. v. Costantini v. Trans World Airlines and Does I Through Xc

Appellant Costantini appeals from the district court’s judgment dismissing his complaint as barred by res judicata. Because we agree that res judicata bars the instant lawsuit, we affirm.

Appellant operates a travel agency business in the San Francisco bay area. In 1972, he entered into a license agreement with Montgomery Ward & Co. [“Ward”] that permitted him to open branch offices in Ward stores nationwide. He opened one such branch office in June 1972 and secured approvals from the Air Traffic Conference of America [“ATC”], a division of the Air Transport Association of America [“ATA”], and from the International Air Transport Association [“IATA”]. These approvals are a prerequisite for a branch office to issue interstate and international airline tickets.

In March 1973, appellant opened a second Ward branch office, and shortly thereafter a third. ATC and IATA refused to approve these offices. In April 1973, Ward informed appellant that it would not allow him to open more Ward branches until he could secure ATC and IATA approval. In April 1974, Ward cancelled the license agreement altogether, effective June 15, 1974.

In February 1974, appellant and his wife filed suit in the…