Does collateral estoppel prevent plaintiffs from pursuing a cause of action for rescission based on duress?

The trial court in this action apparently applied collateral estoppel to conclude the federal court had already determined plaintiffs could not prove duress, so they were foreclosed from pursuing a cause of action for rescission based on duress. Collateral estoppel, also known as issue preclusion, "prevents 'relitigation of issues argued and decided in prior proceedings.' [Citation.] The threshold requirements for issue preclusion are: (1) the issue is identical to that decided in the former proceeding, (2) the issue was actually litigated in the former proceeding, (3) the issue was necessarily decided in the former proceeding, (4) the decision in the former proceeding is final and on the merits, and (5) preclusion is sought against a person who was a party or in privity with a party to the former proceeding." (Castillo v. City of Los Angeles (2001) 92 Cal.App.4th 477, 481.)