Wang v. 1624 U Street, Inc.
20-CV-324
| D.C. | Jun 24, 2021Background
- Wang owns a condo unit directly above Chi Cha Lounge and protested Chi Cha’s 2016 liquor-license renewal before the D.C. Alcoholic Beverage Control Board, alleging excessive noise.
- Wang and Chi Cha entered a settlement: paragraph two required soundproofing per a contractor proposal; paragraph six required Chi Cha to maintain communication and take reasonable measures to address music complaints raised by Wang.
- The Board accepted proof from Chi Cha that it completed the sound mitigation (to the Board’s satisfaction) and renewed the license; Wang’s administrative appeal was unsuccessful.
- Wang sued in Superior Court for breach of paragraph two (failure to provide proof), breach of paragraph six (failure to respond to complaints), private nuisance, and negligence; Chi Cha moved to dismiss, asserting release/res judicata and collateral estoppel.
- The trial court dismissed for failure to state a claim on preclusion grounds; Wang appealed. The D.C. Court of Appeals reversed and remanded, holding res judicata and collateral estoppel did not bar her surviving claims (para six breach, nuisance, negligence).
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether res judicata bars Wang’s civil claims | Wang: Board protest and civil tort/contract claims are different; damages and para-six breaches arose after Board proceeding | Chi Cha: Settlement/proceedings before Board covered same noise issues; Wang had opportunity to litigate | Held: No. Res judicata inapplicable because (1) the release targeted protests only, (2) para-six breach and damages post-dated Board proceeding or were not available before the Board |
| Whether collateral estoppel precludes relitigation of issues decided by the Board | Wang: Key issues were never actually litigated or decided on the merits before the Board | Chi Cha: Board decision and settlement foreclose relitigation | Held: No. Collateral estoppel fails because issues (para-six breach, nuisance, negligence) were not actually litigated or resolved; settlement did not show intent to finally decide those issues |
| Whether the settlement’s release foreclosed civil claims or para-six breach | Wang: Release only barred future protests; it did not waive civil damages or claims for failures occurring later | Chi Cha: Settlement resolved the noise dispute and thus precludes later claims | Held: Release captioned and phrased to bar protests only; it did not waive Wang’s right to sue for damages or for post-settlement breaches of paragraph six |
Key Cases Cited
- Patton v. Klein, 746 A.2d 866 (D.C. 2000) (elements for claim preclusion analysis)
- Elwell v. Elwell, 947 A.2d 1136 (D.C. 2008) (ripeness and when claims could have been raised)
- Kovach v. District of Columbia, 805 A.2d 957 (D.C. 2002) (standard of review for 12(b)(6) and preclusion discussion)
- Whiting v. Wells Fargo Bank, 230 A.3d 916 (D.C. 2020) (settlements ordinarily do not give rise to issue preclusion absent intent)
- Hurd v. District of Columbia, 864 F.3d 671 (D.C. Cir. 2017) (preclusion aims to limit repeated bites at the apple; forum limitations matter)
- Molovinsky v. Monterey Coop., Inc., 689 A.2d 531 (D.C. 1997) (res judicata where plaintiff chose initial forum)
- Osei-Kuffnor v. Argana, 618 A.2d 712 (D.C. 1992) (similar small-claims-to-superior-court res judicata analysis)
- Shin v. Portals Confederation Corp., 728 A.2d 615 (D.C. 1999) (preclusion of claims a plaintiff could have raised earlier)
- Davis v. Davis, 663 A.2d 499 (D.C. 1995) (elements for collateral estoppel)
- Washington Medical Center v. Holle, 573 A.2d 1269 (D.C. 1990) (collateral estoppel framework)
- Arizona v. California, 530 U.S. 392 (2000) (settlement agreements ordinarily do not produce issue preclusion unless parties intend it)
- Choharis v. State Farm Fire & Casualty Co., 961 A.2d 1080 (D.C. 2008) (tort duty must be independent of contract)
