AAA Yearbook on Arbitration & the Law - 25th Edition - Chapter 6 - The Arbitration Proceeding
6.01 Preclusion: Res Judicata and Collateral Estoppel
Cont'l Holdings, Inc. v. Crown Holdings Inc., 672 F.3d 567 (8th Cir. 2012)
Under the doctrine of res judicata, arbitrator’s interpretation of contract provision precluded further litigation of the issue.
Continental sold its metal can technology business to Crown via a stock purchase agreement (SPA). The parties disputed the extent of each other's resultant liabilities, as defined by the indemnity provision in the SPA, and agreed to arbitrate claims related to environmental liabilities in binding arbitration. However, while arbitration was pending, Continental chose to litigate the parties' respective liability for former employees' occupational claims.