Cyсles challenges the district court’s decision to reverse its original ruling in Cycles’ favor. We are persuaded that although the district court had the power to revise its original decision, it wrongly believed itself bound by the contrary findings of a later court. We vacate and remand.
Cycles leased certain truck trailers to W. J. Digby. In August 1980, their deal collapsed, Digby refused to return the trailеrs to Cycles, and a complicated chain of lawsuits followed. First, Cycles sued Digby for conversion (Digby I). The Southern District of Mississippi ruled for Cycles, finding that the lease agreement required Digby to rеturn the trailers to Cycles.
Second, Cycles sued Navistar in the Southern District of Mississippi. In this second suit, the present action, Cycles claims that three years after Digby’s conversion of Cycles’ trаilers, Navistar also converted Cycles’ trailers. Navistar had financed Cycles’ original purchase of the trailers and held Cycles’ installment payment note and certificates of title for the trailers. In early 1988, Navistar transferred the certificates of title to Digby in exchange for full payment of the installment payment note.
At first, the district court agreed that Nav-istar convеrted the trailers by transferring the certificates to Digby. It held that delivering the certificates of title to Digby put the trailers further out of Cycles’ reach, and Navistar at least should have known at thе time that the trailers belonged to Cycles, not to Digby. As the district court then saw it, Navistar’s action both aided Digby’s conversion, and itself converted property. The court on June 80, 1989, filed a “Final Judgment” and awarded damages to Cycles. Navistar filed post-judgment motions to amend the findings of fact and conclusions of law under Rule 52(b) and to alter or amend the judgment under Rule 59(e)..
Cycles, howеver, could not persuade the court to cement this judgment into a final, appealable order. Instead of resolving the post-judgment motions, the court waited four years for the rеsolution of a third suit: Dig-by II.
Digby II
grew out of the demise of
Digby I.
In 1989, we vacated
Digby I
for lack of jurisdiction over Digby.
See Cycles, Ltd. v. W.J. Digby, Inc.,
After Digby II, the court below revised its original opinion and entered judgment for Navistar, explaining that principles of res judicata and collateral estoppel compelled it to reverse its original judgment for Cycles and to render judgment for Navistar. Cycles appeals this ruling.
The district court’s concern with the Arkansas judgment is understandable. The premise of its original opinion finding Navis-tar liable was that Digby’s possession of the trailers was tortious. From that premise, it originally concluded that Navistar’s latеr delivery of the trailers’ certificates of title to Digby was also tortious, since it aided Dig-by’s wrongful possession of the trailers and made it harder for Cycles to get the trailers back.
The Arkansas judgment denied the premise of the Mississippi court’s conclusion. The Arkansas court ruled that Digby did not *1090 convert Cycles’ property. If Digby did not, Navistar’s transfer of the certificates to Dig-by could not. The two acts of claimed conversion were separate, but logically dependent.
In reviewing its original opinion on Navis-tar’s motions, the district court did not rest its decision on the persuasive force of the Arkansas court’s reasoning. Rather, it revised its original opinion, persuaded that the Arkansas judgment compelled it to do so.
This was error. The Arkansas judgment had nо preclusive effect upon decisions already reached after full litigation, like the original ruling; Judgments are final for purposes of issue preclusion when fully litigated, even if not yet appealable.
See Chemetron Corp. v. Business Funds, Inc.,
Case law supports our conclusion that a court is not compelled to revise its fully litigated decision by later inconsistent decisions of other courts. In
American Postal Workers Union v. United States Postal Serv.,
The Sixth Circuit disagreed. In dicta, the court stated that the preclusive force of the Dallas decision did not compel the Ohio court to revise its prior opinion. Id. The Dallas decision would preclude contrаry determinations in all subsequent cases, but not issues already decided. Id. The fact that the Ohio ruling was not final for purposes of appeal made no difference. The Sixth Circuit acknowledged that even though the Ohio court’s ruling was not yet appealable, it had preclusive force. Indeed, the Sixth Circuit noted that the ruling “should have been given preclusive effect in the Dallas case.” Id.
In this respect,
APWU
differs from this case. In
APWU,
the first decision should have precluded the second. Because two plaintiffs were bringing separate actions against the same defendant, the first plaintiff’s victоry in Ohio could have enjoyed issue-preclusive effect in the second case in Dallas.
See Parklane Hosiery Co. v. Shore,
Yet the mark of a decision’s maturity for the рurposes of issue preclusion is whether the decision was fully litigated. If the first decision had the power to preclude relitigation of the same issues, for our purposes it does not mаtter if a later case ignores the opinion’s preclusive power, as in AJPWU, or if no later case had the opportunity to consider its preclusive power, as here. In eithеr event, the fully litigated opinion stands unaffected by a later inconsistent judgment.
We and the other circuits have similarly ruled that the preclusive reach of decisions does not extend tо prior decisions.
See, e.g., Freeman United Coal Mining. Co. v. Office of Workers’ Compensation Program,
Navistar’s proposed rule would unfairly force plaintiffs like Cycles, who must pursue defendants in separate jurisdictions, to play for all or nothing, recovering only with an uninterrupted stream of victories. If, like Cycles, they won one fully litigated judgment against one defendant but lost a second case to a second defendant, they would lose everything. The second adverse judgment would undo their prior, fully litigated victory. Our rejection of this backward reach lies with the longstanding rule that plaintiffs who lose against one defendant are collaterally es-topped from prevailing on the same issue in future cases against other defendants.
See Blonder-Tongue,
We are persuaded that the district court’s original decision was final for purposes of issue preclusion, and the district court erred in concluding thаt it was bound by the later decision of the Arkansas federal court to reverse its original ruling. We vacate the decision below and remand to the district court for decision of Navistar’s post-judgment motions to amend the original findings of fact and conclusions of law and to alter or amend the original judgment, free of any binding effect of the ruhng by the Arkansas court.
VACATED and REMANDED.
