Lead Opinion
Thomas L. Swarek and Thomas Anthony Swarek (“the Swareks”) sued Herman Derr (“Derr”) and Derr Plantation, Inc. («Dpi”) jn thg Chancery Court of Issaque-na County, Mississippi (“Chancery Court”), alleging that Derr and his corporation breached a contract for the sale of Mississippi farmland. Derr died while the action was pending and, after years of stagnation in the Chancery Court, Derr’s wife and children — Till, Kai, Katja, and Margret Derr (“Derr Heirs” or “Heirs”)— sued the Swareks in the German Regional Court in Dusseldorf, Germany, seeking a declaratory judgment that they were not liable for any claims arising from the putative land contract. After the initiation of the German lawsuit but before the decision of the Regional Court, the Swareks dismissed all of their claims against Derr with prejudice and withdrew a pending motion to substitute the Derr Heirs in the Mississippi action. The German Regional Court dismissed the Derr Heirs’ claim but the German Higher Regional Court reversed. The German appellate court granted the Derr Heirs a declaratory judgment of non-liability and assessed the Swareks, аs the losing party, nearly $300,000 in court costs. The Derr Heirs returned to Mississippi and attempted to enforce the German order for costs in federal district court. The district court refused to recognize the German judgment and the Derr Heirs appealed. For the reasons that follow, we affirm.
Facts and Proceedings
In February of 2005, the Swareks made an offer to DPI, a Mississippi corporation, and Derr, one of its principals, to lease and then purchase a large plot of farmland owned by DPI in Issaquena County, Mississippi. On February 15, 2005, the Swar-eks met with Derr in Germany and the parties signed a “Lease/Buy/Sell” agreement — Derr in both his corporate and individual capacities — that the Swareks contend constituted a binding contract for the lease and sale of the farmland. On March 1, 2005, the Swareks filed a complaint and lis pendens notice in the Chancery Court
Derr passed away in February of 2006. His counsel filed a suggestion of death on May 12, 2006, and the Swareks moved to substitute his estate on June 6, 2006. On DPI’s motion, the case was stayed on June 4, 2008, until DPI’s interlocutory appeal challenging the decision of the Chancery Court to transfer venue to the Circuit Court of Issaquena County could be resolved. On March 9, 2009, while the Mississippi litigation was stayed, the Derr Heirs filed a complaint in German Regional Court against the Swareks seeking a declaratory judgment that the Swareks had no claims against them arising from the Lease/Buy/Sell agreement signed by Derr. According to the complaint in the German action, Till Derr and Kai Derr, through a German parent corporation, became the sole shareholders of DPI.
On November 2, 2009, the Swareks filed a second motion to substitute with the Chancery Court, seeking to replace the estate of Herman Derr with the Derr Heirs. The same day, a supplemental motion to dismiss for lack of personal jurisdiction was filed on Derr’s behalf. On May 10, 2010, the Swareks voluntarily dismissed with prejudice all of their claims against Derr in the Mississippi action and withdrew both of their still-pending motions to substitute for Derr his estate and the Derr Heirs.
On August 31, 2010, the German Regional Court dismissed the Derr Heirs’ complaint for a declaratory judgment of non-liability. The Regional Court found that because the action in the Mississippi Chancery Court addressed the Heirs’ claims and must be recognized in Germany, the Heirs “lack[ed] the required legitimate interest in a declaratory judgment, but in any event lack[ed] the need for legal protection.” On appeal, the German Higher Regional Court reversed and awarded the Derr Heirs almost $300,000 in court costs as the prevailing party. The Higher Regional Court found that a declaratory judgment of non-liability was necessary because the Swareks’ dismissal of their claims against Derr “constitute[d] a unilateral statement,” which would not extinguish their claims under German law and which did nоt “provide the same legal protection as results from a negative declaratory cross-action.” The Higher Regional Court further held that the question of whether res judicata applied to the Swar-eks’ voluntary dismissal of their claims with prejudice against Derr in the Chancery Court could “remain open” because if the Swareks were to file another action against the Derr Heirs, the Heirs would be required to prove that res judicata barred the claim.
The Derr Heirs filed suit in federal district court to enforce the German judgment for costs. The district court refused to grant comity to the judgment of the German Higher Regional Court and granted the Swareks’ motion for judgment on the pleadings. The court found that the Derr Heirs’ liability had already been resolved by the Swareks’ dismissal with prejudice in the Chancery Court and, even if the dismissal was not effective, the purpose of the German litigation was to interfere with the Mississippi proceedings and
STANDARD OP REVIEW
“This Court reviews a district court’s grant of judgment on the pleadings under Rule 12(c) de novo.” Doe v. MySpace, Inc.,
Discussion
The district court refused to extend comity to the German judgment on two independent grounds. The court first ruled that the German judgment was unnecessary because the issue of the Derr Heirs’ liability under the Lease/Buy/Sell agreement had already been determined by the Swareks’ dismissal with prejudice of their claims against Derr. The court then held that even if the Swareks’ dismissal of claims against Derr did not preclude them from bringing a future action against the Derr Heirs, the Heirs’ purpose in initiating the German lawsuit was to interfere with the Mississippi litigation and the German Higher Regional Court should have left the issue to be resolved in the Chancery Court.
Filing a mirror-image lawsuit in a foreign court while domestic litigation is
I. The mere initiation of a foreign parallel proceeding is not a ground upon which a court may refuse to enforce the resulting foreign judgment.
Judgments of a foreign country, unlike judgments of a sister state, are not entitled to the protection of full faith and credit under Article IV, Section 1 of the United States Constitution, but are enforced on the basis of comity. Khreich,
In determining whether a foreign judgment is deserving of recognition, the Mississippi Supreme Court receives guidance from the Restatement (Second) of Conflict of Laws § 98. See Laskosky v. Laskosky,
there has been opportunity for a full and fаir trial abroad before a court of competent jurisdiction, conducting the trial upon regular proceedings, after due citation or voluntary appearance of the defendant, and under a system of jurisprudence likely to secure an impartial administration of justice between the citizens of its own country and those of other countries, and there is nothing to show either prejudice in the court, or in the system of laws under which it is sitting, or fraud in procuring the judgment. ...
Restatement (Second) of Conflict of Laws § 98(c) (1971) (quoting Hilton,
Although comity is not an “absolute obligation,” it is more than “mere courtesy and good will.” Hilton,
The district court, relying on Laker Airways, Ltd. v. Sabena, Belgian World Airlines,
The Laker court, however, made clear that “parallel proceedings on the same in personam claim should ordinarily be allowed to proceed simultaneously, at least until a judgment is reached in one which can be pled as res judicata in the other.” Id. at 926-27. It distinguished the usual case of permissible parallel proceedings from the ease at issue, finding it was “not a situation where two courts are proceeding to separate judgments simultaneously under one cause of action. Rather, the sole purpose of the English proceeding is to terminate the American action.” Laker Airways,
But even if the Swareks could have enjoined the Derr Heirs from litigating their declaratory judgment action in Germany, they did not seek to do so.
II. The Swareks’ unilateral dismissal with prejudice in the Mississippi litigation was a final judgment on the merits invoking a res judicata bar to re-asserting the dismissed claims against the Derr Heirs.
To uphold the district court’s refusal to recognize the German judgment, then, the Swareks’ dismissal with prejudice of their claims against Derr in the Mississippi Chancery Court must have constituted a judgment barring a subsequent suit on the same claims against the Derr Heirs. The Swareks contend, as they did in the German Higher Regional Court, that their voluntary dismissal with prejudice pursuant to Miss. R. Civ. P. 41(a)(l)(i)
“Res judicata is a doctrine of claim preclusion.” Garcino v. Noel,
At first glance, the Derr Heirs’ conclusion that the Swareks’ dismissal lacked res judicata effect appears to be compelled by the requirements necessary to invoke the doctrine. A court that lacks jurisdiction over a defendant does not have the authority to address the merits of the case and must dismiss the action. Horne v. Mobile Area Water & Sewer Sys.,
But here it was not the Chancery Court that dismissed the Swareks’ claims against Derr, but the Swareks themselves. Miss. R. Civ. P. 41(a)(l)(i) provides that “an action may be dismissed by the plaintiff without order of court ... by filing a notice of dismissal at any time before service by the adverse party of an answer or of a motion for summary judgment, whichever first occurs.” (emphasis added). “Unless otherwise stated in the notice of dismissal or stipulation, the dismissal is without prejudice.” Miss. R. Civ. P. 41(a)(1). Both the Mississippi and Federal rules make explicit that a dismissal, with or without prejudice, is effective without any action of the court. See Fed. R.Civ.P. 41(a)(l)(A)(i) (“[T]he plaintiff may dismiss an action without a court order by filing ... a notice of dismissal before the opposing party serves either an answer or a motion for summary judgment....”).
That res judicata bars the Swareks’ claims against Derr does not end the inquiry into whether the Swareks were foreclosed from re-alleging the same claims in a subsequent action against the Derr Heirs. The Heirs maintain that they were not parties to the Mississippi litigation and, consequently, the Swareks’ dismissal had no effect on their potential liability for breach of the purported land contract. But this narrow view ignores that “strict identity of parties is not necessary for either res judicata or collateral estoppel to apply, if it can be shown that a nonparty stands in privity with the party in the prior action.” EMC Mortg. Corp. v. Carmichael,
Finally, although Derr passed away in 2006, the Chancery Court never acted on Derr’s initial motion to dismiss or the Swareks’ timely motion to substitute his estate, so the Swareks’ claims against Derr were still pending at the time of the Swar-eks’ voluntary dismissal. See Miss. R. Civ. P. 25(a) (upon the death of a party, “[t]he action shall be dismissed without prejudice as to the deceased party if the motion for substitution is not made within ninety days after the death is suggested upon the record” (emphasis added)). Defendants еvi
III. The district court did not abuse its discretion by refusing comity to the German judgment that resulted from the German Higher Regional Court’s own refusal to extend comity to the Mississippi judgment.
We now address the question of whether the district court abused its discretion by denying comity to the German judgment on the ground that the German Higher Regional Court ignored the Swareks’ dismissal with prejudice of the very claims upon which the Derr Heirs sought a declaratory judgment of non-liability. As relevant here, Mississippi provides for two exceptions to the general rule that a valid foreign judgment rendered by a foreign court of competent jurisdiction will be enforced domestically. Mississippi courts will not grant comity where doing so would “render meaningless substantial rights of the non-moving party,” Harrison,
The German Higher Regional Court’s failure to respect the Swareks’ dismissal with prejudice of their claims against Derr — and by the rule of privity, the Derr Heirs — violated Mississippi public policy and rendered meaningless the right of the Swareks to put an end to litigation of their claims. The German appellate court wholly ignored the res judi-cata issue, instead finding that the question could “remain open” because there was a possibility that the Swareks could pursue the identical claims against the Derr Heirs under German law in the future, in which case the Heirs would bear the burden of “proving” that the action was foreclosed. But this reasoning misunderstands the very purpose of according comity to foreign judgments. “[0]nce the parties have had an opportunity to present their cases fully and fairly before a [foreign] court of competent jurisdiction, the results of the litigation process should be final.” Int’l Transactions,
The Derr Heirs’ corollary argument that the German Higher Regional Court was correct to apply German law and civil procedure to determine the Heirs’ liability in Germany similarly misses the mark. Uniformity of laws and procedural rules between the domestic and foreign states is not necessary for a final judgment in one forum to be respected in another. See Ohno v. Yasuma,
The Derr Heirs’ final argument is that they were not seeking to enforce the German Higher Regional Court’s substantive judgment of non-liability in the Mississippi district court, but only its attendant order for costs. This attempt to separate the cost award from the underlying decision on liability is unpersuasive. German law provides for the award of costs to the prevailing party — the cost award does not exist independently of the underlying judgment. If the Derr Heirs hаd not obtained a declaratory judgment of non-liability on the identical claims that the Swareks had dismissed with prejudice nearly two years earlier, no order for costs would have issued.
The Swareks’ voluntary dismissal with prejudice in the Chancery Court operated as an adjudication on the merits under Mississippi law and thus already provided the Derr Heirs with the judgment of non-liability they were seeking in Germany. Had the German Higher Regional Court recognized the Mississippi judgment, it would have dismissed the Heirs’ redundant action — as the German trial court did— and the Swareks would not have been saddled with the costs of the unnecessary litigation. The German Higher Regional Court’s decision to sidestep the comity determination and re-adjudicate claims that had already been settled in the Chancery Court violated the Mississippi public policy of res judicata and the Swareks’ right to
Conclusion
For the foregoing reasons, we AFFIRM the judgment of the district court.
Notes
. The Swareks’ claims against DPI have had a long shelf life. The trial in the Mississippi litigation concluded in September of 2013 and is pending decision by the chancellor.
. Recent cases of this circuit have stated unequivocally that a district court's comity decision is subject to abuse-of-discretion review. See, e.g., Anderson Tully Lumber Co. v. Int’l Forest Prods., S.r.L.,
. The Derr Heirs argue that the district court’s finding that they intended to interfere with the Chancery Court litigation was inappropriate on a motion for judgment on the pleadings because there was no evidence in the record to support the conclusion, the Heirs were not given an opportunity to respond, and the Swareks did not argue that particular defense. This contention is puzzling because after the Swareks filed a motion for judgment on the pleadings, the Derr Heirs did in fact submit their own motion for summary judgment and a reply to the Swareks’ motion. And, as referenced in its order, the district court grounded its findings in the Derr Heirs' complaint in the German Regional Court and the order of the German Higher Regional Court; it did not improperly cull from facts outside of the record. Finally, the Swareks’ motion requested non-recognition of the judgment on comity grounds, under which the court placed its interferenсe analysis. Notwithstanding the lack of merit in this objection, the point is moot because we affirm on the grounds that the German Higher Regional Court ignored the Mississippi judgment.
. Likewise, Restatement (Third) of Foreign Relations Law of the United States § 482 lists seven grounds upon which a court may refuse to recognize an otherwise valid foreign judgment. That Restatement provides, in relevant part:
(2) A court in the United States need not recognize a judgment of the court of a foreign state if:
(a) the court that rendered the judgment did not have jurisdiction of the subject matter of the action;
(b) the defendant did not receive notice of the proceedings in sufficient time to enable him to defend;
(c) the judgment was obtained by fraud;
(d) the cause of action on which the judgment was based, or the judgment itself, is repugnant to the public policy of the United States or of the State where recognition is sought;
(e) the judgment conflicts with another final judgment that is entitled to recognition; or
(f) the proceeding in the foreign court was contrary to an agreement betwеen the parties to submit the controversy on which the judgment is based to another forum.
Restatement (Third) of Foreign Relations Law of the United States § 482(2) (1987).
. Had the Swareks moved for an anti-suit injunction, there is authority indicating that it would have been granted. See Scruggs, Millette, Bozeman & Dent, P.A. v. Merkel & Cocke, P.A.,
. The Swareks assert in their brief that they voluntarily dismissed all of their claims against Derr “pursuant to Miss. R. Civ. P. 41(a)(2).” This statement appears to be in error. Miss. R. Civ. P. 41(a)(2) provides for voluntary dismissal by order of the court. The Swareks argued in the district court that they unilaterally dismissed their claims with prejudice pursuant to Miss. R. Civ. P. 41(a)(l)(i). Likewise, their "Notice of Voluntary Dismissal” in the Chancery Court stated only that they were dismissing the claims against Derr with prejudice and did not request court permission to do so. Because Derr had not filed an answer, the court's imprimatur was not required.
. Mississippi modeled its own Rule 41 after Fed.R.Civ.P. 41, and the Mississippi Supreme Court looks to federal precedent to interpret the state rule. BellSouth Pers. Commc’ns LLC v. Bd. of Sup'rs of Hinds Cnty.,
. The only court to consider the issue has recently come to the same conclusion. In Arias v. Napolitano, No. 13-cv-248,
. Because the Derr Heirs do not contest the district court's finding that they are in privity with Derr any such argument is also waived. See Fed. R.App. P. 28(a)(8)(A); United States v. Ogle, 415 F.3d 382, 383 (5th Cir.2005).
. The Derr Heirs’ very attempt to enforce the German order for costs in the United States reveals the infirmity of their argument that Mississippi claim preclusion law must be identical to German claim preclusion law to be afforded effect in German court. American law, in most instances, does not award costs to the prevailing party. Yet, as the Heirs point out, cost awards rendered in a foreign court will be recognized in the United States. See, e.g., Tahan v. Hodgson,
Concurrence Opinion
concurring in part and dissenting in part:
I agree with my сolleagues in the majority as to the conclusions set forth in Part I of their opinion. One litigant’s initiation of a parallel lawsuit in a foreign country while a domestic lawsuit remains pending is not a basis on which a district court may deny comity to the resulting foreign judgment.
As explained below, even if the Swareks’ voluntary dismissal of their contract claim “with prejudice” under Rule 41 of the Mississippi Rules of Civil Procedure operated as a final judgment as to the Derr Heirs, that final judgment does not conflict with the German court’s decision in this case. On the contrary, the German court’s decision is in accord with the Swareks’ Rule 41 dismissal. That is, the Swareks neither recovered any damages nor received any other remedy on their claim for breach of contract. As for the costs award rendered during the German proceedings, the German court stated explicitly thаt those costs would have accrued even if the German court had ruled on the basis of res judicata
Accordingly, there is no conflict between the two purported final judgments in the present case. There is no recognized basis, therefore, on which to deny comity.
I.
The majority explains that Mississippi courts would deny comity to the German judgment because “[t]he German Higher Regional Court’s failure to respect the Swareks’ dismissal with prejudice ... violated Mississippi public policy and rendered meaningless the right of the Swar-eks to put an end to litigation of their claims.” In support, the majority cites several general statements by Mississippi courts regarding the importance of the public policies underlying the doctrine of res judicata. The majority identifies no decisions by Mississippi courts, however, that have ever denied comity to a judgment based on a foreign court’s “failure to respect” a res judicata decision rendered earlier in time by a Mississippi court. Nor does the majority identify any such decisions by the federal courts. Nor does the majority identify any such decisions by the courts of any other state in the United States.
The majority’s “failure to respect” rationale bears some resemblance to a well-recognized exception to the doctrine of comity. This exception is applicable in cases where a foreign judgment “conflicts with another final judgment.”
It is possible, therefore, that Mississippi’s public policy does require denial of enforcеment to a foreign judgment that “conflicts” with a final judgment rendered earlier in time
II.
Roughly three pages of the German Higher Regional Court’s ruling address the substantive merits of the Swareks’ contract claim against Derr and the Derr Heirs.
Had the German Higher Regional Court ruled on the basis of res judicata, the result would have been identical. That is, the Swareks would have recovered no damages nor received any other relief on their contractual claims, and the Derr Heirs would have been awarded costs under German law as the successful parties. Accordingly, even though the German
The absence of any conflict is demonstrated, in particular, by two aspects of the German Higher Regional Court’s reasoning. First, as the majority acknowledges, the German Higher Regional Court explicitly pretermitted the applicability of res judicata. In its written opinion, the German Higher Regional Court explained that the question of whether the Swareks’ voluntary “withdrawal of the complaint” gave rise to “a procedural preclusion (‘res judi-cata’) ... c[ould] remain open.”
Second, as the German Higher Regional Court also stated explicitly, costs would have accrued even if the doctrine of res judicata had been the basis of the German judgment. According to the German Higher Regional Court, “[e]ven if’ the Swareks’ voluntary dismissal had res judi-cata effect, the Derr Heirs would nonetheless “be required to prove that the res judicata effect extended] to them” in “the event of an action filed against them” and “any ambiguity w[ould] be resolved at their expense.”
Nor would there seem to be any obligation, in the present case, for the German courts to forgive those costs that had already accrued before the Swareks’ Rule 41 dismissal. It is true, as the majority emphasizes, that the German Higher Regional Court decided the Swareks’ appeal on January 12, 2012 — nearly two years after the Swareks’ Rule 41 dismissal occurred on May 10, 2010. But the Swareks’ Rule 41 dismissal also did not occur until more than a year after the Derr Heirs’ lawsuit had been filed in the German trial court on March 9, 2009. The majority asserts that the German Higher Regional Court’s costs award “rendered meaningless the right of the Swareks to put an end to litigation of their claims.” But surely any right to terminate one’s claims under Mississippi law does not entail the power to escape the costs that one has already accrued during previous or ongoing litigation in a foreign jurisdiction.
I therefore do not understand the majority’s conclusion that “[i]f the Derr Heirs had not obtained a declaratory judgment of non-liability on the identical claims that the Swareks had dismissed with prejudice nearly two years earlier, no order for costs would have issued.” On the contrary, costs apparently would have accrued anyway during post-judgment litigation when the Rule 41 dismissal was “pled as res judicata”
Accordingly, as is evident from the written opinion of the German Higher Regional Court, such costs would have been awarded against the Swareks under § 91(1) of the German Code of Civil Proce
III.
As explained above, even if the Mississippi doctrine of res judicata had been applied in the German court precisely as the Swareks now articulate that doctrine, we would still be faced with a German declaratory judgment awarding no damages to the Swareks and awarding costs to the Derr Heirs. Only the reasoning of the declaratory judgment would be different.
At most, therefore, all that can be said is that the German Higher Regional Court did not apply Mississippi law on claim preclusion when it proceeded to analyze the merits of the Swareks’ contract claim. This was not necessarily even legal error. There are also courts in the United States that have applied the claim preclusion rules of the enforcement forum rather than those of the rendering forum when faced with enforcing a foreign country’s judgment.
In summary, the majority’s interpretation of the public policy exception to the doctrine of comity is unsupported by Mississippi law or by any other authorities identified during these proceedings. This interpretation denies enforcement to a judgment that was evidently rendered by “a court of competent jurisdiction ... under a system of jurisprudence likely to secure an impartial administration of justice” absent any indication of “prejudice in the court ... or fraud in procuring the judgment.”
For these reasons, I would reverse the district court’s order granting the Swar-eks’ motion for judgment on the pleadings. Accordingly, I respectfully dissent.
. See Royal & Sun Alliance Ins. Co. of Canada v. Century Int’l Arms, Inc.,
. In Part II, the majority explains that the Swareks’ voluntary dismissal of their lawsuit "with prejudice” under Rule 41 of the Mississippi Rules of Civil Procedure operates as a “final judgment on the merits” and entails claim-preclusive effect under Mississippi law. The majority concludes that this Rule 41 dismissal is entitled to claim-preclusive effect even as to Derr and the Derr Heirs, despite the Swareks’ failure to serve Derr and the Derr Heirs with process in the Mississippi proceedings. Neither the litigants nor the court, however, have identified any decisions by Mississippi courts in support of this con-elusion. The majority also fails to address Semtek International Inc. v. Lockheed Martin Corp.,
. As the majority correctly observes, " 'an abuse of discretion standard does not mean a mistake of law is beyond appellate correction.’ ” Sw. Livestock & Trucking Co. v. Ramon,
. Indeed, some authorities suggest that courts have discretion to enforce the later-in-time judgment. See Koehler v. Bank of Bermuda Ltd., M18-302(CSH),
.See Restatement (Third) of Foreign Relations Law § 482(2)(e) (emphasis added).
. Turner Entm’t Co. v. Degeto Film GmbH, 25 F.3d 1512, 1521 (11th Cir.1994) (emphasis added).
. See Tex. Civ. Prac. & Rem.Code § 36.005(b)(4) (“A foreign country judgment need not be recognized if ... the judgment conflicts with another final and conclusive judgment....”); Beluga Chartering B.V. v. Timber S.A.,
. See Dep’t of Human Servs., State of Miss. v. Shelnut,
. But see Byblos Bank,
. See Derr Heirs’ Compl., Ex. B, 7-9 (Rec. Doc.1-3).
. See id.
. See id. at 10 ("The decision on the costs is based on § 91 para. 1, sentence 1 of the German Code of Civil Procedure....”); 7 Digest of Commercial Laws of the World § 119:1 ("§ 91(1) The unsuccessful party shall bear the costs of the action, including, but not limited to, compensating the opponent for his or her expenses to such extent as they wеre necessary for the appropriate prosecution or the defense of his or her rights.”); Burkhard Hess & Rudolf Huebner, Cost and Fee Allocation in German Civil Procedure, 11 IUS Gentium 151, 151, 154-55 (2012) ("Court charges are generally calculated on the basis of the amount in controversy.... As the court fees are solely based on the amount in controversy, they do not depend on the efforts actually undertaken by the Court. Neither the length nor the difficulty of the proceedings is taken into account. Court fees rise with the amount in controversy on a digressive scale.”).
. See Derr Heirs' Compl., Ex. B, 7 (Rec. Doc.1-3).
. See id. at 9 ("Thus, it can remain open whether the assertion of possible claims may also be barred by the statute of limitations.”).
. See, e.g., Freeman v. Texas Dep't of Criminal Justice,
. See Derr Heirs’ Compl., Ex. B, 7 (Rec. Doc.1-3).
. See 7 Digest of Commercial Laws of the World § 119:1; Hess & Huebner, 11 IUS Gentium at 151. The Swareks have implied that some relationship exists between the failure to apply res judicata and the costs award. In urging this inference, the Swareks emphasize the fact that the German appellate court awarded costs (after failing to apply res judi-cata), whereas the German trial court did not award costs. Compare Swareks' Answer and Affirmative Defenses, Ex. 13, 2-5 (Rеc.Doc.6-13), with Derr Heirs’ Compl., Ex. B, 7 (Rec. Doc.1-3). But this inference is incorrect. As revealed by a comparison of the two German courts' opinions, the difference between their reasoning was unrelated to the doctrine of res judicata. For its part, the German trial court did not even mention res judicata. Indeed, the res judicata issue likely was never raised before the German trial court because the Swareks never appeared in those trial proceedings. The disagreement between the two German courts actually focused solely on the interpretation of Section 256 of the German
. See Royal & Sun Alliance,
. See Royal & Sun Alliance,
. See Derr Heirs' Compl., Ex. B, 7 (Rec. Doc.1-3).
. See Andes v. Versant Corp.,
. Restatement (Second) of Conflict of Laws § 98 Comment D (1971, rev'd 1988) ("[T]he judgment will not be refused recognition on the ground that the rendering court made an error of law or of fact.”); see also, e.g., de Csepel v. Republic of Hungary,
. See Hilton,
