Rjg Consultants, Inc. v. Force Protection, Inc.

MEMORANDUM

Appellant RJG Consultants, Inc. (RJG) challenges the district court’s dismissal of its breach of contract and breach of the covenant of good faith and fair dealing claims as barred by collateral estoppel.

The district court properly held that RJG was collaterally estopped from raising its claims because the California Court of Appeal’s denial of RJG’s petition to compel arbitration conclusively resolved RJG’s claims against FPI. See Murray v. Alaska Airlines, Inc., 50 Cal.4th 860 , 114 Cal.Rptr.3d 241 , 237 P.3d 565, 571 (2010) (“An issue is actually litigated when it is properly raised, by the pleadings or otherwise, and is submitted for determination, and is determined. A determination may be based on a failure of proof ....”) (citations, alterations, internal quotation marks and emphases omitted). Although RJG had the opportunity to provide support for its claims, see Bouton v. USAA Cas. Ins. Co., 167 Cal.App.4th 412, 427-28 , 84 Cal.Rptr.3d 152 (2008), the California Court of Appeal held that there was no evidence demonstrating that FPI was a party to the representation agreement or that FPI received any contractual benefits. See Murray, 114 Cal.Rptr.3d 241 , 237…