What is collateral estoppel and res judicata when a final judgment on the merits of a claim is made against the same party?

MultiRegion, United States of America

The following excerpt is from Conley v. Van Sickle, 937 F.2d 611 (9th Cir. 1991):

Under res judicata, a final judgment on the merits bars further claims by parties based on the same cause of action.... Under collateral estoppel, once an issue is actually and necessarily determined by a court of competent jurisdiction, that determination is conclusive in subsequent suits based on a different cause of action involving a party to the prior litigation.

Montana v. United States, 440 U.S. 147, 153 (1979) (citations omitted).

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