What effect does "collateral estoppel" have on litigation?

Collateral estoppel, also known as issue preclusion, plays a significant role in litigation by preventing the re-litigation of issues that have already been decided in a final judgment in earlier proceedings. This principle serves to protect the integrity of the judicial system by ensuring that once a court has made a determination on a specific issue, that issue cannot be contested again in later cases involving the same parties.

The rationale behind collateral estoppel is that it promotes judicial efficiency by reducing the number of trials needed to resolve disputes. It also protects parties from the burden of having to relitigate issues that have already been established, thereby offering finality to legal decisions.

The other options highlight concepts that do not accurately reflect the purpose or effect of collateral estoppel. The notion of allowing multiple trials on the same issue contradicts the function of collateral estoppel, which is designed to limit such occurrences. Encouraging settlements before trial doesn’t relate to the principle itself but rather to broader litigation strategies. Lastly, the requirement for new evidence does not apply under collateral estoppel, as the focus is on the issues already adjudicated rather than on introducing new evidence to challenge those determinations.