Wis. Pub. Serv. Corp. v. Arby Constr., Inc.Annotate this Case
The two plaintiffs in this case, Wisconsin Public Service Corporation (WPSC) and Associated Electric & Gas Insurance Services Limited (AEGIS), brought suit against the defendant, Arby Construction, Inc. (Arby), for indemnification of the damages that the plaintiffs paid in the settlement of a tort suit in federal court. The circuit court dismissed the AEGIS claim against Arby on the basis of claim preclusion. At issue on appeal was whether AEGIS raised, in the form of an affirmative defense, a cross-claim against Arby in the prior federal action and was therefore precluded from pursuing the same claim in this action because the claim was adjudicated in the federal judgment of dismissal. The Supreme Court affirmed the court of appeals, which affirmed the circuit court, holding that AEGIS's claim was raised, in substance, in the prior federal action and was decided. Therefore, the claim was subject to claim preclusion and was properly dismissed by the circuit court.