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Jacobs v. CBS Broadcasting | 291 F.3d 1173 (2002)
The doctrine of issue preclusion, or collateral estoppel, states that if an issue’s been litigated and decided and the issue was essential to the decision, the issue can’t be relitigated by the losing party in a new proceeding. Jacobs versus C B S Broadcasting applies this to arbitration.
Michael Givens was a member of the Writers Guild of America who wrote a script titled Final Edition and contracted with Westwind Releasing Corporation to get a broadcast commitment from a network for it. Givens and Westwind agreed that any writing credit for Givens would be determined based on the credit-determination procedures in the Writers Guild of America’s Minimum Basic Agreement.
C B S acquired the broadcast rights to Final Edition from Westwind and bought all the rights to Final Edition from Westwind and Givens. The credit-determination procedures provision from the contract between Givens and Westwind was incorporated into this agreement. The network also agreed to give coexecutive producer credit to Mike Jacobs Junior and William Webb if a project was made based on the literary property.
The network was part of the production of a series called Early Edition, which shared a premise with Givens’ Final Edition script. An early notice of tentative writing credits for Early Edition didn’t include Givens. Givens complained to the Writers Guild, citing the credit-determination provisions. The guild investigated and determined Givens wasn’t a participating writer of Early Edition. Givens appealed twice. The guild reaffirmed both times.
Givens, Jacobs, Webb, and Westwind filed a breach-of-contract action against C B S in state court. The network removed the suit to federal court and filed a notice to pursue arbitration through the Writers Guild. Proceedings were stayed pending arbitration. The arbitrator ruled in the network’s favor. Givens stipulated to this award. The network moved for summary judgment against the remaining parties, saying the arbitration had preclusive effect on their suit because it was derivative of Givens’s claim. The court granted summary judgment for the network because of the nonmutual collateral-estoppel effect of the guild’s initial participating-writer determination against Givens. Jacobs, Webb, and Westwind appealed.
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