In the context of preclusion, which statement is true?

• A. Issue preclusion bars relitigation of a claim; claim preclusion bars specific issues determined previously.
• B. Claim preclusion bars relitigation of a claim; issue preclusion bars relitigation of particular issues determined in a prior action.
• C. Preclusion never applies in federal court.
• D. Preclusion requires a waiver in all cases.

Answer: (B)

Preclusion rests on two doctrines: claim preclusion and issue preclusion. Claim preclusion, or res judicata, bars a later lawsuit based on the same claim after a final judgment on the merits in a prior action. Issue preclusion, or collateral estoppel, bars relitigating specific facts or legal issues that were actually litigated and necessarily decided in the prior action.

The correctly stated idea is that claim preclusion prevents bringing back a claim, while issue preclusion prevents relitigating particular issues that were decided before. This captures the distinct purposes: one protects the claim as a whole, the other protects the resolution of specific issues. The other options either reverse the roles of the two doctrines, claim that preclusion never applies in federal court, or assert that waiver is always required, none of which align with how preclusion actually works.