Santiago-Martinez v. Fundacion Damas, Inc., No. 21-1718 (1st Cir. 2024)
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The case concerns parents of a child who suffered severe and permanent injuries at birth due to alleged negligence of the medical staff at Hospital Damas. The parents sued Fundación Damas, Inc., alleging that it operated the hospital at the time of the malpractice. The district court granted summary judgment to Fundación on the basis of issue preclusion, concluding that the parents were "virtually represented" in earlier proceedings by the parents of another child who also suffered injuries at the hospital.
The United States Court of Appeals for the First Circuit reversed the district court's decision. The appellate court found that the theory of virtual representation, which the district court relied on, was inapplicable to this case. According to the Supreme Court's precedent, issue preclusion generally does not apply to those who were not party to the prior litigation. The court noted that the Supreme Court had rejected the broad theory of virtual representation, which was the basis for the district court's decision. The court explained that the exceptions to the rule against nonparty preclusion are narrow and specific, and none applied in this case. Therefore, the court reversed the grant of summary judgment and remanded the case for further proceedings.
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