In a recent opinion, the California Court of Appeal addressed whether a small claims action precludes further litigation of issues before a trial court. While policy reasons support a finding of issue preclusion, the court here stated that only when it can be determined the same issues were actually litigated in small claims court will the parties be precluded from relitigating their issues.
Don Phuong Gedenberg pulled his tractor-trailer, owned by his employer, Valley Recycling, out of a driveway in San Jose, California. He parked his vehicle on the shoulder, facing traffic. Mr. Gedenberg did not sufficiently straighten his vehicle, and the front right portion of the trailer jutted into the southbound lane.
A Santa Clara Valley Transportation Authority (SCVTA) bus collided with Valley Recycling’s trailer. The driver was injured, and the trailer and bus were severely damaged. Valley Recycling’s insurance company filed a complaint to recover $44,166.67 in damages to the tractor-trailer. SCVTA’s insurance company, Great American, and SCVTA filed a cross-complaint, seeking to recover their losses due to the damage to SCVTA’s bus.