At issue is whether we should give pre-clusive effect to a state court judgmént on a collective bargaining matter. In a declaratory judgment action, the District Court held that despite a prior New Jersey judgment, the Delaware River Port Authority had no duty under its congres-sionally approved bi-state compact to recognize certain collective bargaining rights of supervisory employees. We will reverse.
I.
In 1999 the Fraternal Order of Police, Penn-Jersey Lodge 30 (“Lodge 30”) and the Policemen’s Benevolent Association In-tercounties Local 30 (“Local 30”) sought recognition and the right to collectively bargain for supervisory law enforcement personnel from the Delaware River Port Authority (DRPA) and the Port Authority Transit Corporation (PATCO), a subsidiary of the DRPA. A majority of “superior officers” — corporals and sergeants with supervisory capacity — employed by the DRPA and the PATCO had authorized the unions to represent them as their exclusive bargaining agents.
The DRPA sought a declaratory judgment in the United States District Court for the Eastern District of Pennsylvania that (1) the authority to fix and determine terms and conditions of employment, including compensation of the superior officers, rests solely with the DRPA; and (2) the DRPA was not required to recognize
There is a prior history of labor-management relations between the parties. In 1975, the DRPA voluntarily recognized Lodge 30 as the collective bargaining agent for DRPA patrol officers and until 1996, negotiated a series of collective bargaining agreements.
The New Jersey Superior Court, Appellate Division, affirmed, holding:
Although neither of the creator states of a bi-state agency may unilaterally impose its legislative will on the bi-state agency ... the agency may be subject to complementary or parallel state legislation.... This parallel or complementary legislation need not be nearly identical and specifically apply to the agency. Rather, the public policy of both states, articulated in parallel statutes that are substantially similar but do not specifically include defendant, is applicable to a bi-state agency, although the statutory scheme of each state is not.
Id. at 551 (quotations and citations omitted). The New Jersey Supreme Court denied a petition for certification.
The unions cite the preclusive effect of Lodge 30. Additionally, they claim the New Jersey and Pennsylvania statutes providing collective bargaining rights to patrol officers also apply to the DRPA. See N.J.Stat.Ann. § 34:13A-1 et seq. (West 1990 & Supp.1993), Pa.Stat.Ann. tit. 43, § 217.1 et seq. (1961 & Supp.1993). These “complementary” statutory schemes, the unions contend, demonstrate each legislature has “concurred in” the legislation of the other, effectively modifying the DRPA Compact.
The District Court granted the DRPA’s motion for summary judgment, concluding that under federal constitutional and statutory law, the DRPA Compact can only be amended by legislation of both New Jersey and Pennsylvania that (1) “expressly applies” to the DRPA; and (2) is “substantially similar” in substance, imposing specific additional duties on the DRPA. DRPA v. Fraternal Order of Police,
II.
In 1931, the State of New Jersey and the Commonwealth of Pennsylvania legislatively created the Delaware River Port Authority to develop the ports of Philadelphia and Camden and to operate bridges and provide mass transportation across the Delaware River. NJ.Stat.ANn. § 32:3-2 et seq.; Pa.Stat.Ann. tit. 36, § 3503 et seq. Under the Compact Clause of the United States Constitution, “No State shall, without the Consent of Congress ... enter into any Agreement or Compact with another State.” U.S. Const. art. I, § 10, cl. 3. The United States Congress formally approved the DRPA Compact in 1932.
The DRPA is a “public corporate instrumentality of the Commonwealth of Pennsylvania and the State of New Jersey.” NJ.Stat.AnN. § 32:3-2, Pa.Stat.Ann. tit. 36, § 3503. But it is not an “arm” of either state. Nor is it vested with attributes of state sovereignty. Peters v. DRPA,
Article IV(e) of the Compact provides the DRPA Commissioners the right to “appoint, hire or employ ... agents and employees, as it may require for the performance of its duties, by contract or otherwise, and fix and determine their qualifications, duties and compensation.” NJ.Stat.Ann. § 32:3-5, Pa.Stat.Ann. tit. 36, § 3503. Under Article IV(e), the DRPA maintains a Bureau of Police to protect the public and DRPA property. The Bureau consists of patrol officers, sergeants, and corporals, who are accorded “all of the powers ... and all of the immunities conferred by law on police officers or municipal police officers in ... the State of New Jersey and the Commonwealth of Pennsylvania.” N.J.Stat.Ann. § 32:4-6, Pa.Stat.
III.
First, we consider whether the District Court wrongfully declined to give issue preclusive effect to Lodge SO, which held that legislation need not “specifically” apply to the DRPA Compact to modify the DRPA’s obligations to collectively bargain with its police officers. We exercise plenary review over this question of law.
Under the doctrine of issue preclusion, a determination by a court of competent jurisdiction on an issue necessary to support its judgment is conclusive in subsequent suits based on a cause of action involving a party or one in privity. E.g., Kremer v. Chem. Constr. Corp.,
More than two hundred years ago, the first Congress enacted the predecessor to 28 U.S.C. § 1738, the Full Faith and Credit Act, which now provides:
*573 The ... judicial proceedings of any court of any ... State, Territory, or Possession [of the United States] ... shall have -the same full faith and credit in every court within the United States and its Territories and Possessions as they have by law or usage in the courts of such State, Territory or Possession from which they are taken.
Section 1738 therefore requires state court decisions be given the same preclusive effect in federal court they would be given in the courts of the rendering state. The phrase “every court within the United States” encompasses all courts, regardless of jurisdiction. The statute directs federal courts considering the preclusive effect of another jurisdiction’s prior judgment to look not to federal preclusion law or practice but to what the other jurisdiction would decide regarding its preclusive effect.
The threshold issue on appeal is whether the District Court should have given preclusive effect to the narrow issue of the DRPA’s collective bargaining obligations, previously litigated in Lodge 30.
New Jersey courts apply a five-pronged test to determine whether collateral estoppel should bar relitigation of an issue: (1) the issue must be identical; (2) the issue must have actually been litigated in a prior proceeding; (3) the prior court must have issued a final judgment on the merits; (4) the determination of the issue must have been essential to the prior judgment; and (5) the party against whom collateral estoppel is asserted must have been a party or in privity with a party to the earlier proceeding. In re Estate of Dawson,
As noted, the District Court rejected any preclusive effect of Lodge SO:
*574 The issue in this case, but not present in Lodge SO, is whether, in the absence of voluntary recognition, DRPA is obligated under the terms of the Compact to recognize and bargain collectively with the Unions.... Therefore, because the duty of the DRPA under the Compact to recognize and bargain collectively with police officers was not relevant to the cause of action or the issues involved in Lodge 30 and was not considered by the Appellate Division, Lodge 30 is not a bar to the instant action.
We disagree. Lodge 30 satisfies the requirements outlined in Dawson and has preclusive effect here. In Lodge 30, the “identical issue” — whether an “express statement" is necessary to modify the DRPA’s obligations to bargain with its patrol officers — was “litigated in the prior proceeding.” See
The DRPA contends ... that these voluntary acts [of union recognition] do not provide any basis to impose on it the impasse-resolution procedures applicable to public employers in New Jersey to resolve the current impasse between it and its police officers.... [T]he agency may be subject to complementary or parallel state legislation. This parallel or complementary legislation need not be nearly identical and specifically apply to the agency. Rather, the public policy of both states, articulated in parallel statutes that are substantially similar but do not specifically include defendant, is applicable to a bi-state agency....
(quotations and citations of New Jersey cases omitted). There was a “final judgment on the merits.” The “determination” that an express statement is unnecessary to modify the DRPA Compact was “essential to the prior judgment.” And the party against whom issue preclusion is asserted was “a party or in privity with a party to the prior adjudication.” As noted, the DRPA litigated both lawsuits. Cf. United States v. Silliman,
Additional factors support our conclusion. The DRPA could have removed Lodge 30, which presented federal constitutional questions, but chose instead to litigate in state court. Also, Lodge 30 was decided less than three years ago and New Jersey courts have not called it into question in the interim. Furthermore, the Lodge 30 decision has not proven “inequitable.” Nor do we review the soundness of the Lodge 30 decision. The issues in that case are not before us and have been rejected in the state appellate proceedings where the parties elected to litigate. Whether we would have reached the same result as the New Jersey court is not at issue.
The effort to distinguish the facts and issues between this litigation and Lodge 30 is unavailing. For the purposes of issue preclusion, any distinction between this litigation and Lodge 30 is legally insignificant.
Under this set of facts, we must give effect to the Lodge SO court’s determination that in the context of collective bargaining for law enforcement officers, amending the DRPA Compact does not require “express” statutory amendment by its creator states.
That the litigation concerns federal law does not alter the analysis in
Since a Compact comes into being through an Act of Congress, its construction gives rise to a federal question. But a federal question does not require a federal answer by way of a blanket, nationwide substantive doctrine where essentially local interests are at stake. A Compact, is after all, a contract. Ordinarily, in the interpretation of a contract, the meaning the parties attribute to the words governs the obligations assumed in the agreement. Similarly, since these States had the freedom to waive or to refuse to waive immunity granted by the Eleventh Amendment, the language they employed in the Compact, not modified by Congress, should be limited to the legal significance that these States have placed upon such language, not to avoid the obligations they undertook, but to enforce the meaning of conventional language used in their law.
Petty v. Tenn.-Mo. Bridge Comm’n,
State courts may answer federal questions.
The United States Supreme Court has cautioned that a “question or right distinctly adjudged in the original action cannot be disputed in a subsequent action, even though the determination was reached upon an erroneous view or by an erroneous application of the law,” where “a party ... freely and without reservation submits his federal claims for decision by the state courts ... and has them decided there.” Montana,
IV.
We turn now to a matter not considered by the District Court.
Lodge SO held that New Jersey and Pennsylvania have enacted parallel legislation that gave law enforcement employees the right to freely organize and designate representatives for good-faith negotiations.
Our review of each state’s enactments governing police and fire labor relations, the New Jersey Police and Fire Public Interest Arbitration Reform Act and the Pennsylvania Collective Bargaining by*578 Policemen or Firemen Act, reveals that each state has made a policy decision in favor of public interest arbitration for police officers. Certainly, there are some differences in each scheme.... Although we discern some differences in each state’s legislation governing public employer-employee labor disputes, we conclude that those differences do not negate the basic public policy of each state that their public employees are entitled to engage in collective negotiations with their employer. The discrepancies are not so significant to render the two statutory schemes substantially dissimilar. Thus, the New Jersey statutes and the Pennsylvania statutes are complementary and parallel.
Id. at 552-54 (citations omitted).
The DRPA suggests the differences between the statutory schemes are too numerous to label them “complementary.” There are some “differences” — including the different bargaining rights of first-level supervisors in New Jersey and Pennsylvania.
Therefore, we will give preclusive effect to the determination that DRPA and PAT-CO supervisory law enforcement officers have the right to bargain collectively with management.
V.
For the foregoing reasons we will reverse and remand for proceedings consistent with this opinion.
Notes
. Because the PATCO’s interests in this litigation coincide with the DRPA’s interests, we will collectively refer to the two as "the DRPA.”
The DRPA has two separate police forces. Lodge 30 seeks to represent the sergeants and corporals employed by the DRPA itself. Local 30 seeks to represent the sergeants, corporals, and detectives employed by the PATCO's Police Department. The reasons why the different unions seek to represent the different officers are irrelevant to this appeal, so we will not distinguish Lodge 30’s arguments from Local 30’s arguments.
. These officers were considered “rank and file” members of the departments. The officers seeking recognition and bargaining rights in the present suit are their "superiors."
. The District Court cited cases interpreting New Jersey-New York interstate agencies: the Waterfront Commission, e.g., Malverty v. Waterfront Comm’n,
. The District Court had jurisdiction under 28 U.S.C. § 1331. We have jurisdiction under 28 U.S.C. § 1291.
.Eight of the Commissioners are appointed by the Governor of New Jersey for periods of five years. The Governor of Pennsylvania appoints six Commissioners for five-year terms, with the elected Auditor General and the elected State Treasurer of Pennsylvania filling the remaining two positions for their four-year terms. All Commissioners, other than the Pennsylvania Auditor General and State Treasurer, continue to hold office after the expiration of their terms and until their successors are appointed and qualified.
. The DRPA urges us to review for abuse of discretion. New Jersey courts have sometimes applied the issue preclusion doctrine in a discretionary way. See, e.g., Mew Jersey v. Gonzalez,
We exercise plenary review over the grant of summary judgment and the legal interpretation of the Compact. Witkowski,
. We have observed that issue preclusion can avoid the costly litigation of issues already determined. O'Shea v. Amoco Oil Co.,
. In Parsons Steel, Inc, v. First Alabama Bank,
. Accord Marrese v. Am. Acad. of Orthopaedic Surgeons,
.Under federal common law the standards are almost identical. In Board of Trustees of Trucking Employees of North Jersey Welfare Fund, Inc. v. Centra,
. In a footnote, the District Court added, "The DRPA is of course free to voluntarily recognize and bargain collectively with its superior officers. The issue presented by this case is not whether the DRPA has the power to recognize and bargain collectively, but whether it is under any legal duty to do so.” Id. at 611 n. 18.
. The DRPA claims that even where a prior and a subsequent proceeding turn on a common underlying issue, if the factual circumstances of the cases differ, the issue may not
. The DRPA disputes that New Jersey courts always disavowed the "express intent” requirement. In DRBA v. Int’l Org. of Masters, Mates & Pilots,
. The Constitution’s Full Faith and Credit Clause does not apply in this context. The Clause only indicates that full faith and credit shall be given in each state to the judicial proceedings of every other stale. U.S. Const. art. IV, § 1.
. In Switlik v. Hardwicke Co., Inc.,
. Accord Hickerson v. City of New York, 146 F.3d 99, 103-13 (2d Cir.1998) (finding state court's rejection of plaintiffs' state constitutional claims foreclosed plaintiffs from relit-igating, in the form of a First Amendment claim in federal court, the same issues resolved against them in state court); see also Marrese,
. Discussing one New Jersey Supreme Court case, the District Court held, "Because the ... Court was professedly interpreting federal law, their pronouncements are only persuasive authority with respect to this court. Of course, if New Jersey state law applied and the New Jersey Supreme Court was construing New Jersey law, its holdings would be binding on this court.”
. The District Court’s public policy analysis of whether the "concurred in” requirement was satisfied absent "express” statutory statements was unnecessary. Cf. Montana,
. The District Court held International Union of Operating Engineers, Local 68 v. Delaware River & Bay Authority,
. Perhaps for this reason, the parties have not extensively briefed the issue.
. And under 43 Pa. Cons.Stat. § 1101.1301, Pennsylvania’s PLRB has exclusive jurisdiction over all labor matters. Under NJ.Stat. Ann. § 34:13A-5.2, New Jersey’s PERC is vested with such jurisdiction.
. The DRPA contends New Jersey courts can allow relitigation of a purely legal issue, even where the usual prerequisites for issue preclusion are satisfied. E.g., Dawson,
.We need not reach the constitutional inquiry of whether congressional consent is necessary to impose additional duties, as opposed to additional powers, under DRPA.
