What does collateral estoppel prevent?

Collateral estoppel, also known as issue preclusion, is a legal doctrine that prevents parties from relitigating an issue that has already been determined in a final judgment in a previous case involving the same parties. This helps to ensure that judicial resources are conserved by avoiding repetitive litigation of facts or legal issues that have already been settled.

In a situation where there has already been a verdict or ruling on a specific issue, collateral estoppel asserts that the same parties cannot challenge that issue again in future litigation. This promotes legal consistency and fairness, as it ensures that once a party has had the opportunity to litigate and resolve a particular aspect of their case, they cannot reopen it simply because they wish to revisit the topic or because they are unhappy with the previous outcome.

The other options do not accurately reflect the purpose of collateral estoppel. The method for resolving disputes out of court, the admission of new evidence, and settlement agreements each pertain to different aspects of the legal process and do not relate to the idea of precluding previously adjudicated issues.