Rock Springs Mesquite II Owners' Ass'n v. Raridan

In this property dispute, the Supreme Court reversed the order of the district court granting Respondents' motion to dismiss on the basis of claim preclusion, holding that Appellant's action in Case 2 could not have been brought in Case 1, and therefore, Case 2 was not precluded.

In Case 1, Appellant claimed that its neighbors' masonry wall and other property improvements were compromising Appellant's retaining wall. Appellant sought only monetary damages. The jury rendered a verdict in favor of the neighbors. The neighbors subsequently sold their property to Respondents. In Case 2, Appellant filed a declaratory relief action seeking a declaration that it had a right to remove its own retaining wall, even if doing so would impact the structural integrity of Respondents' masonry wall. The district court dismissed the case based on claim preclusion. The Supreme Court reversed, holding (1) Appellant's declaratory relief action in Case 2 was not brought in Case 1; (2) Appellant's action in Case 2 was not based on the same facts or alleged wrongful conduct as its claims in Case 1; and (3) therefore, Appellant's action in Case 2 was not precluded.