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From: KMC
Date: 09 May 2002
Time: 11:49:13
Because Action #1 was a diversity case, the court should have disallowed nonmutual collateral estoppel to all of the plaintiffs because of TX's then rule of mutuality of estoppel. Although federal common law exists, and provides for nonmutual collateral estoppel , it applies only to nondiversity judgments. Under Semtek, diversity judgments are subject to the local state law.