Lead Opinion
I.
Almost two decades ago, six individuals filed a lawsuit in Florida state court against the major domestic makers of cigarettes and two industry organizations seeking over $100 billion in both compensatory and punitive damages for injuries allegedly caused by smoking. Liggett Grp. Inc. v. Engle,
To manage the class action, the trial court developed a trial plan that had three phases. See Engle III,
The Engle class came close to running the table — the jury answered “yes” to almost every question put to them. The jury found: (1) that smoking cigarettes causes 20 of 23 listed diseases or medical conditions; (2) that cigarettes containing nicotine are addictive or dependence producing; (3) that the defendants placed cigarettes on the market that were defective and unreasonably dangerous; (4) that the defendants made a false statement of a material fact, either knowing the statement was false or misleading, or being without knowledge as to its truth or falsity, with the intention of misleading smokers; (4a) that the defendants concealed or omitted material information, not otherwise known or available, knowing the material was false and misleading, or failed to disclose a material fact concerning or proving the health effects and/or addictive nature of smoking cigarettes; (5) that the defendants entered into an agreement to misrepresent information relating to the health effects of cigarette smoking, or the addictive nature of smoking cigarettes, with the intention that smokers and members of the public rely to their detriment; (5a) that the defendants entered into an agreement to conceal or omit information regarding the health effects of cigarette smoking, or the addictive nature of smoking cigarettes, with the intention that smokers and members of the public rely to their detriment; (6) that the defendants sold or supplied cigarettes that were defective in that they were not reasonably fit for the uses intended; (7) that the defendants sold or supplied cigarettes that, at the time of sale or supply, did not conform to representations of fact made by the defendants either orally or in writing; (8) that the defendants failed to exercise the degree of care that a reasonable cigarette manufacturer would exercise under like circumstances; (9) that the defendants engaged in extreme and outrageous conduct or with reckless disregard relating to cigarettes sold to Florida smokers with the intent to inflict severe emotional distress; and (10) that the defendants’ conduct rose to a level that would permit a potential award or entitlement to punitive damages. See id. at 1257 n. 4.
In Phase I, however, the jury was not asked whether the class had proven any of its claims; it did not decide if the defendants were liable to anyone on any cause of action. See Engle III,
Later, in Phase II, the same jury did determine that the defendants’ conduct was the legal cause of three individual class representatives’ injuries. The three were awarded a total of $12.7 million in compensatory damages after their comparative fault was taken into account. Engle III,
Before Phase III could be conducted, the defendants appealed the verdicts the jury had returned in Phases I and II. Engle II,
The class appealed the Third District Court of Appeal’s decision to the Florida Supreme Court. That court agreed that the punitive damages award to the class should be reversed, Engle III,
The Florida Supreme Court decided that the trial court had not abused its discretion in certifying the Engle class for Phases I and II but also decided that “continued class action treatment for Phase III of the trial plan [was] not feasible because individualized issues such as legal causation, comparative fault, and damages [would] predominate.” Id. at 1267-68. As for the jury’s findings in Phase I, the court threw out four of them but determined that the remainder could stand.
The pragmatic solution is to now decertify the class, retaining the jury’s Phase I findings other than those on the fraud and intentional infliction of emotion distress claims, which involved highly individualized determinations, and the findings on the entitlement to punitive damages questions, which was premature. Class members can choose to initiate individual damages actions and the Phase I common core findings we approved above will have res judicata effect in those trials.
Id. at 1269 (emphasis added). The Florida Supreme Court’s instruction that the Phase I approved findings have “res judicata effect” is at the heart of this appeal, which resulted from a lawsuit filed in federal district court by some of the former Engle class members.
In their amended complaint, the plaintiffs sought to recover compensatory and punitive damages from the defendants under theories of strict liability, breach of express warranty, breach of implied warranty, civil conspiracy to fraudulently conceal, fraudulent concealment, negligence, and loss of consortium. The plaintiffs asserted the “res judicata effect” of the Engle Phase I approved findings and took the position that the only issues left in the case were “specific causation, apportionment of damages, comparative fault, compensatory damages, entitlement to punitive damages, and punitive damages.” The defendants disagreed and countered by asking the district court for a pre-trial order outlining the preclusive effect that the Phase I approved findings would have in this case. They wanted an order “specifying that Plaintiffs cannot rely on the Engle findings as establishing any of the elements of their claims.” The district court did issue an order that “the findings [could] not be given preclusive effect in any proceeding to establish any element of an Engle Plaintiffs claim.” Brown,
[T]he Phase I findings may prevent a defendant from arguing, inter alia, that it never acted negligently, never engaged in a conspiracy to conceal, or never placed a defective product on the market. In addition, the general findings of Question 1, that cigarette smoking causes various diseases and illnesses and, in a proper circumstance, may be given preclusive effect, prevents the Defendants from denying that cigarette smoking itself has been found to cause, inter alia, aortic aneurysm, bladder cancer, coronary heart disease, and lung cancer.
Id. at 1344 n. 25. This is the plaintiffs’ interlocutory appeal of that pretrial order. See 28 U.S.C. § 1292(b).
II.
The district court determined that allowing the Engle Phase I approved findings to establish elements of the plaintiffs’ causes of action would violate the defendants’ due process rights. See Brown,
The Rooker-Feldman doctrine is jurisdictional. It “prevents ... lower federal courts from exercising jurisdiction over cases brought by ‘state-court losers’ challenging ‘state-court judgments rendered before the district court proceedings commenced.’ ” Lance v. Dennis,
Recently, in Exxon Mobil Corp. v. Saudi Basic Industries Corp.,
Although the defendants before us were the “state-court losers” in Engle Phase I, where the approved findings were entered, they did not bring this lawsuit. It was brought by the plaintiffs who were the state-court winners. The Rooker-Feldman doctrine only applies when the federal plaintiff is the “state-court loser.”
III.
Under the Full Faith and Credit Act, 28 U.S.C. § 1738, a federal court must “give preclusive effect to a state court judgment to the same extent as would courts of the state in which the judgment was entered.” Kahn v. Smith Barney Shearson Inc.,
In Engle III, as we have already noted, the Florida Supreme Court directed that the Phase I approved findings were to have “res judicata effect” in future trials involving former class members. See Engle III,
The term “res judicata” is translated from the Latin as “a thing adjudicated,” but it has more than one meaning. See Black’s Law Dictionary 1336 (8th ed.2004). It can refer specifically to claim preclusion or it can refer generally to the preclusive effect of earlier litigation. See Wacaster v. Wacaster,
Claim preclusion “bars a subsequent action between the same parties on the same cause of action.” State v. McBride,
Issue preclusion, by contrast, operates more narrowly to prevent re-litigation of issues that have already been decided between the parties in an earlier lawsuit. See Mortg. Elec. Registration Sys., Inc. v. Badra,
The “essential elements” of issue preclusion under Florida law are “that the parties and issues be identical, and that the particular matter be fully litigated and determined in a contest which results in a final decision of a court of competent jurisdiction.” Dadeland Depot, Inc. v. St. Paul Fire & Marine Ins. Co.,
When those elements are present, issue preclusion can be applied offensively or defensively. See E.C. v. Katz,
In Phase I the same parties as in the present lawsuit litigated “common issues” relating to “the defendants’ conduct and the general health effects of smoking.” Engle III,
Because factual issues and not causes of action were decided in Phase I, the Florida Supreme Court’s direction that the approved findings were to have “res judicata effect” in future trials involving former class members necessarily refers to issue preclusion. See Rice-Lamar v. Fort Lauderdale,
As we have already explained, issue preclusion only operates to prevent the re-litigation of issues that were decided, or “actually adjudicated,” between the parties in an earlier lawsuit. See Gordon v. Gordon,
Florida courts have enforced the “actually adjudicated” requirement, see Gordon,
Applying the “actually adjudicated” requirement to this case, the Phase I approved findings may not be used to establish facts that were not actually decided by the jury. The plaintiffs, who want the benefit of the findings in this case, do not disagree with that proposition. And, of course, neither do the defendants. In fact, the defendants contend that using the findings to establish facts that were not decided by the jury would violate their due process rights. We need not decide that constitutional issue, because under Florida law the findings could not be used for that purpose anyway. The bottom line, then, is that the Phase I approved findings may be given effect to the full extent of, but no farther than, what the jury found. The disagreement is about what the jury actually did find. The defendants, taking a narrow view, insist that the only facts found by the jury are those framed by the specific factual issue set out in the questions posed to them on the verdict form.
For example, Question 3 on the verdict form asked the jury: “Did one or more of the Defendant Tobacco Companies place cigarettes on the market that were defective and unreasonably dangerous?” The jury answered “yes,” for every time period for every defendant except Brooke Group, Ltd., Inc.
In the pre-trial order that is the subject of this interlocutory appeal, the district court decided that the Phase I approved findings may not be used to establish any element of the plaintiffs’ causes of action. Brown,
We leave it to the district court to apply Florida law as we have outlined it and decide in the first instance precisely what facts are established when preclusive effect is given to the approved findings. It is for the district court to determine, for example, whether the jury’s answer to Question 3 establishes only that the defendants sold some cigarettes that were defective and unreasonably dangerous, or whether the plaintiffs have carried their burden of showing to a reasonable degree of certainty that it also establishes that all of the cigarettes that the defendants sold fit that description. See Seaboard,
Until the scope of the factual issues decided in the Phase I approved findings is determined, it is premature to address whether those findings by themselves establish any elements of the plaintiffs’ claims. Only after Florida law is properly applied to determine the scope of the facts established by the approved findings can it be decided which, if any, elements of the claims are established by them. Accordingly, the district court’s ruling that “the findings may not be given preclusive effect in any proceeding to establish any element of an Engle Plaintiffs claim,” cannot stand, at least not at this time. That finishes our consideration of the case. See McFarlin v. Conseco Servs., LLC,
IV.
The district court’s order that was certified for interlocutory appeal is VACATED, and the case is REMANDED for further proceedings consistent with this opinion.
Notes
. The exceptions were that the jury found that smoking did not cause asthmatic bronchitis, infertility, or bronchioloalveolar carcinoma. The jury also found that one of the defendants, Brooke Group, Ltd., did not: place defective and unreasonably dangerous cigarettes on the market until after July 1, 1974; make a false statement of material fact with the intention of misleading smokers until after May 5, 1982; conceal or omit material information until after May 5, 1982; sell or supply defective cigarettes until after July 1, 1974; sell or supply cigarettes in breach of an express warranty until after July 1, 1974; or fail to exercise the degree of care that a reasonable cigarette manufacturer would exercise under like circumstances until July 1, 1969.
. The court concluded that two of the class representatives were not proper members of the class because they were not diagnosed with a disease until after October 31, 1994, the date it determined was the cut-off for class membership. The third class representative's claims, the court concluded, were barred by the statute of limitations. See Engle II,
. The Florida Supreme Court concluded that "the critical event" for class membership was "not when an illness was actually diagnosed by a physician, but when the disease or condition first manifested itself." Engle III,
. The Florida Supreme Court threw out the jury's findings in response to Question 4, which involved fraud and misrepresentation, and Question 9, which involved intentional infliction of emotional distress. Engle III,
. The district court's order applies to 3,200 cases removed from state court and another 661 cases originally filed in federal court. Even in the removed cases, the federal plaintiff is still the “state-court winner,” not the "state-court loser.”
. That statute provides:
Final judgments or decrees rendered by the highest court of a State in which a decision could be had, may be reviewed by the Supreme Court by writ of certiorari where the validity of a treaty or statute of the United States is drawn in question or where the validity of a statute of any State is drawn in question on the ground of its being repugnant to the Constitution, treaties, or laws of the United States, or where any title, right, privilege, or immunity is specially set up or claimed under the Constitution or the trea*1331 ties or statutes of, or any commission held or authority exercised under, the United States.
28 U.S.C. § 1257(a). The Rooker-Feldman doctrine "draws a negative inference from section 1257: because Congress only provided for review of state court judgments by the Supreme Court, Congress therefore intended to preclude lower federal courts from exercising such review.” Nicholson v. Shafe,
. The plaintiffs argued before the district court and suggested in their brief to this Court that the Florida Supreme Court was referring to claim preclusion in Engle III. However, at oral argument the plaintiffs clarified that their position is that the Phase I approved findings are entitled to issue preclusive effect. As our discussion in the text makes clear, if the plaintiffs had continued to argue for claim preclusion, we would have rejected that position.
. The jury found that Brooke Group, Ltd., Inc., sold cigarettes that were defective and unreasonably dangerous after July 1, 1974, but not before that date.
. In their brief the plaintiffs point to the website of Philip Morris as evidence that all cigarette types and brands are equally dangerous, but the brief does not suggest that the website was part of the trial record. Even if it was, there still would be no indication that the jury actually found as a fact that all types and brands of cigarettes were equally defective and unreasonably dangerous.
. Although not deftly presented, there is in the plaintiffs' main brief something from which one might infer an argument that the jury’s findings can be combined with facts that can be proven through other means to establish an element of a claim. For example, a Phase I approved finding that the defendants sold cigarettes that were defective and unreasonably dangerous might be combined with proof in this lawsuit that all cigarettes are equally defective and unreasonably dangerous. Maybe, but the argument is too poorly developed now for us to address. We leave it to the district court to decide the matter if it is appropriately presented.
. Our colleague, Judge Anderson, has filed a concurring opinion. We fully agree with everything that he says in that opinion and incorporate its statements into this one.
Concurrence Opinion
concurring specially:
I concur in Judge Carnes’ opinion for the court. Although plaintiffs failed to persuade the district court at this stage of the litigation that they could show with the requisite degree of certainty that all facts necessary to establish any particular element of any plaintiffs cause of action had been actually adjudicated and actually decided by the Phase I jury,
. Nor have plaintiffs arguments on appeal been persuasive in this regard. The generality of the Phase I findings present plaintiffs with a considerable task. The Florida issue preclusion law will have to be applied to specific facts demonstrated with the requisite certainty to have been adjudicated and decided by the Phase I jury (which plaintiffs thus far have not attempted to do). In order to use Phase I findings to help establish any particular element of any plaintiff’s cause of action, plaintiffs not only will have to do the foregoing, but it will also probably be necessary for plaintiffs to prove additional facts in this litigation.
