Patel

MEMORANDUM **

Plaintiff-Appellant KPOD, Ltd., challenges the district court’s grant of summary judgment in favor of DefendantAppellees Bharat and Ashik Patel (“the Patels”). The dispositive issue here is whether the district court erred in holding that collateral estoppel precluded KPOD’s federal court action. Because the parties are familiar with the facts and procedural history, we do not restate them here except as necessary to explain our disposition.

The preclusive effect of a state court decision is determined by the law of that state. See Marrese v. Am. Acad. of Orthopaedic Surgeons, 470 U.S. 378 , 379-82, 105 S.Ct. 1327 , 84 L.Ed.2d 274 (1985). Under California law, the doctrine of collateral estoppel will bar relitigation of an issue when: “(1) the issue is identical to that decided in a former proceeding; (2) the issue was actually litigated and (3) necessarily decided; (4) the doctrine is asserted against a party to the former action or one who was in privity with such a party; and (5) the former decision is final and was made on the merits.” Kelly v. Vons Cos., Inc., 67 Cal.App.4th 1329 , 79 Cal.Rptr.2d 763, 769 (1988).

Here, the issues raised in KPOD’s state and…