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The Eighth Circuit Court of Appeals held that it did not need to decide an appeal from an abstention ruling because a state court’s subsequent confirmation of the arbitration award had a res judicata effect.
In Myer v. Americo Life, Inc., No. 06-1687, 2006 WL 3299870 (8th Cir. Nov. 15, 2006), Myer sold many of his companies to Americo. Concurrently with the sale, the parties entered into a consulting agreement. Americo subsequently pursued arbitration against Myer for breach of non-competition provisions in the consulting agreement and an award was issued in its favor.
Myer moved to vacate the award in a Missouri federal district court. The next day, Americo moved to confirm the award in a Texas state court. The Missouri federal court abstained in favor of the Texas action and dismissed the case. The Texas state court subsequently confirmed the award. Myer sought to appeal the Missouri federal court’s abstention order.
The Court disregarded Myer’s argument that because he had requested a new trial, the trial court’s decision was not preclusive. All of the required res judicata elements were present: the issued judgment was final, the parties were the same, and Myer’s second action involved the same claims he had raised in his first claim.
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