Lightsway Litigation Services, LLC V. Wimar Tahoe Corporation & Columbia Sussex Corporation
- Summarized by Jonathan Batiste , Rensselaer Polytechnic Institute
- 1 month 3 weeks ago
- Case Type:
- Business
- Case Status:
- Affirmed
- Citation:
- No. 25-1009 (3rd Circuit, Dec 23,2025) Not Published
- Tag(s):
-
- Ruling:
- Lightsway Litigation Services erred under New Jersey’s issue preclusion laws. Under New Jersey law, precluded issues must be identical to previously decided issues; issues are not identical if a different legal standard applies. Thus, issue preclusion is inappropriate when the burden of proof switches to another party or when the burden of proof is lighter in subsequent actions. Here, the burden of proof switched to another party, and it changed from a “clear and convincing” standard to a preponderance of evidence standard. Thus, issue preclusion is inappropriate here.
- Procedural context:
- Lightsway, trustee and appellant, appealed the bankruptcy court’s decision dismissing Lightsway’s contract claims. There, the bankruptcy court considered whether Wimar Tahoe and the Columbia Sussex Corp. breached their service contracts.
- Facts:
- The Wimar Tahoe Corp. tried to show the New Jersey Casino Control Commission that it deserved a casino license. But the Commission affirmatively found misconduct. On appeal from the bankruptcy court, the circuit court applied New Jersey law because Lightsway asked the circuit court to give the Commission's decision preclusive effect. The circuit court affirmed the bankruptcy court's ruling; Lightsway's arguments failed.
- Judge(s):
- Krause, Phipps, and Chung
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