Acme Steel Company (formerly known as Interlake, Inc., and now known as Acme Metals, Inc.) and Consolidated Subsidiaries - Page 48

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               Collateral estoppel should not be applied where to do so               
          would work a “manifest injustice”.  See Grantham v. McGraw-Edison           
          Co., 444 F.2d 210, 217 (7th Cir. 1971); see also 18 Wright                  
          et al., Fed. Prac. P., secs. 4424, 4426 (2002).  The                        
          determination of “‘whether or not application of collateral                 
          estoppel is fair depends upon a case by case analysis,’ and * * *           
          courts should be sensitive to the ‘practical realities which                
          surround the parties’.”  Chicago Truck Drivers v. Century Motor             
          Freight, Inc., 125 F.3d at 531 (quoting Butler v. Stover Bros.              
          Trucking Co. 546 F.2d 544, 551 (7th Cir. 1977)).  A situation in            
          which the application of collateral estoppel produces an unjust             
          result is when the party sought to be precluded did not have an             
          adequate incentive to obtain a full and fair adjudication in the            
          initial action.  See Ferrell v. Pierce, 785 F.2d 1372, 1384-1385            
          (7th Cir. 1985); see also Restatement, Judgments 2d, sec. 28(5)             
          (subsection (c)) (1980).                                                    
               In Ferrell v. Pierce, supra, a District Court in a class               
          action interpreted a decree controlling HUD mortgage default                
          relief practices to require the use of a particular rule when               
          calculating the date of default in all pending and future cases;            
          no appeal was taken.  In a subsequent contempt proceeding, the              
          same issue arose with respect to retroactive rather than future             
          application of the same rule.  The Court of Appeals for the                 
          Seventh Circuit ruled that issue preclusion did not foreclose               






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