First Circuit Opines on Finality and Claim Preclusion

The First Circuit per Judge Boudin recently issued an opinion discussing the finality requirements necessary to permit a prior dismissal to bar a subsequent claim under the principles of res judicata. In AVX Corp. v. Cabot Corp., 424 F.3d 28 (1st Cir. Sep. 13, 2005) the court held that the finality test for appealability of federal judgment also controls the finality determination for claim preclusion purposes. Because the earlier claim was dismissed without prejudice, the court concluded that the prior dismissal could not bar litigation of the same claim in a subsequent action.