John M. and Rita K. Monahan - Page 27

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               Sua sponte consideration of issue preclusion generally                 
          should be limited to circumstances where the parties are given an           
          opportunity to address the applicability of the doctrine to a               
          particular issue.  See Nevada Employees Association, Inc. v.                
          Keating, 903 F.2d 1223, 1225-1226 (9th Cir. 1990); McClain v.               
          Apodaca, supra at 1033; see also Blonder-Tongue Labs., Inc. v.              
          University of Ill. Found., 402 U.S. 313, 350 (1971) (“The purpose           
          of * * * [requiring claim preclusion and issue preclusion to be             
          pleaded] is to give the opposing party notice of the plea of                
          estoppel and a chance to argue, if he can, why the imposition of            
          an estoppel would be inappropriate.” (emphasis added)).  The                
          Court need not subject the issue preclusion decision to the                 
          rigors of the adversarial process, however, if doing so would be            
          futile.  Cf., e.g., McKinney v. Oklahoma Dept. of Human Servs.,             
          925 F.2d 363, 365 (10th Cir. 1991) (District Court may sua sponte           
          dismiss a complaint under Fed. R. Civ. P. 12(b)(6) without notice           
          and an opportunity to respond when it is “patently obvious” that            
          claimant could not prevail); Baker v. Director, U.S. Parole                 
          Commn., 916 F.2d 725, 726-727 (D.C. Cir. 1990) (same); Omar v.              
          Sea-Land Serv., Inc., 813 F.2d 986, 991 (9th Cir. 1987) (where              
          counterclaimant cannot possibly win relief because its theory was           
          the same as its defense to a claim, which defense was rejected              
          after a hearing, the trial court did not err in effectively                 







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