The following excerpt is from U.S. v. Hutton, 108 F.3d 339 (9th Cir. 1997):
Once an ultimate issue of fact has been validly and finally determined, that same issue cannot be relitigated between the same parties in a later lawsuit. Ashe v. Swenson, 397 U.S. 436, 443 (1970). Thus, this court must determine "whether a rational jury could have grounded its verdict upon an issue other than that which the defendant seeks to foreclose from consideration." Id. at 444.
Collateral estoppel analysis involves a three-step inquiry. First, the issues identified must be sufficiently similar and material to justify the use of collateral estoppel; second, the record of the first trial is reviewed to determine if the issue sought to be foreclosed was fully litigated; finally, the court must determine if the issue was necessarily decided in the first trial. Crooks, 804 F.2d at 1446, (citing United States v. Schwartz, 785 F.2d 673, 681 (9th Cir.), cert. denied, 479 U.S. 890 (1986)).
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