RILEY, Chief Judge.
In this diversity case, see 28 U.S.C. § 1332(a)(1), Michelle Ideker appeals the non-prejudicial dismissal of her work-related personal injury claim against her former employer, Harley-Davidson Motor Company Operations, Inc., and Harley-Davidson, Inc. (collectively, Harley-Davidson), on collateral estoppel grounds. The district court
On April 30, 2010, Ideker sued Harley-Davidson Motor Company Group, Inc. (HD Group) and others in federal district court, alleging she developed non-Hodgkins lymphoma from exposure to benzene while working in HD Group's paint department. On January 18, 2011, the district court dismissed Ideker's complaint against HD Group for failing to state a claim upon which relief could be granted. See Fed. R.Civ.P. 12(b)(6). Deciding a matter of first impression in Missouri, the district court predicted the Missouri Supreme Court would require Ideker to raise her occupational disease claim against HD Group before Missouri's labor and industrial relations commission (commission) because her claim was "covered by Missouri's Workers' Compensation Law." On April 8, 2011, Ideker filed a workers' compensation claim with the commission, which is still pending.
Ideker's tort claims against the remaining defendants stayed before the district court until August 17, 2011, when the district court granted Ideker's voluntary stipulation of dismissal without prejudice. Ideker concedes the district court's dismissal of HD Group became final and appealable at that time.
Less than thirty days later, see Fed. R.App. P. 4(a)(1)(A), on September 13, 2011, the Western District of the Missouri Court of Appeals, over two separate dissents, issued an opinion that cast some doubt on the district court's state-law prediction. See State ex rel. KCP & L Greater Mo. Operations Co. v. Cook, 353 S.W.3d 14, 29-30 (Mo.Ct.App.2011); accord Amesquita v. Gilster-Mary Lee Corp., 408 S.W.3d 293, 301 (Mo.Ct.App.2013) (Eastern District) (agreeing with majority in KCP & L). In KCP & L, the Missouri Court of Appeals — examining Missouri's workers' compensation law as amended in 2005 — determined Missouri's exclusivity provisions, Mo.Rev.Stat. § 287.120, did not bar common-law tort claims alleging occupational disease. KCP & L, 353 S.W.3d at 29-30.
Although Ideker's counsel was also counsel in KCP & L and frankly admits he was aware of the decision before Ideker's time to appeal expired, counsel explains Ideker did not appeal because "[a]t the time, there was little incentive for Ideker to seek appellate review requiring a second federal court to predict how Missouri courts would rule."
On August 27, 2012, Ideker filed a new complaint in Missouri state court, reasserting her occupational disease claim against Harley-Davidson. Harley-Davidson answered,
On June 4, 2013, Harley-Davidson moved for summary judgment based on collateral estoppel. The district court initially denied the motion, deciding its "prediction as to how the Missouri Supreme Court would rule on this novel issue has proved to be incorrect" and that collateral estoppel did not apply because the Missouri appellate decisions constituted an "intervening change in the law." But upon reconsideration under Federal Rule of Civil Procedure 60(b), the district court reversed course and dismissed Ideker's claims without prejudice on collateral estoppel grounds.
The district court still thought its prediction was wrong,
In a diversity case like this, we apply state substantive law in deciding whether to apply collateral estoppel or issue preclusion, see Austin v. Super Valu Stores, Inc., 31 F.3d 615, 617 (8th Cir. 1994), "giving a ... judgment preclusive effect if a court in that state would do so," In re Scarborough, 171 F.3d 638, 641 (8th Cir.1999). "`This rule applies even when the original judgment is that of another federal court sitting in diversity.'" Liberty Mut. Ins. Co. v. FAG Bearings Corp., 335 F.3d 752, 758 (8th Cir.2003) (internal marks omitted) (quoting Follette v. Wal-Mart Stores, Inc., 41 F.3d 1234, 1237 (8th Cir.1994), aff'd on reh'g, 47 F.3d 311, 313 (8th Cir.1995)). We review de novo the district court's determination that collateral estoppel applies under Missouri law. See Boudreau v. Wal-Mart Stores, Inc., 249 F.3d 715, 719 (8th Cir.2001).
"Collateral estoppel, or issue preclusion, bars relitigation of an issue already decided in a different cause of action." Derleth v. Derleth, 432 S.W.3d 771, 774 (Mo.Ct.App.2014); accord Brown v. Carnahan, 370 S.W.3d 637, 658 (Mo.2012) (en banc). Properly applied, the doctrine "promote[s] judicial economy and finality in litigation," Liberty Mut., 335 F.3d at 758, spares parties "the expense and vexation attending multiple lawsuits, ... and fosters reliance on judicial action by minimizing the possibility of inconsistent decisions," Montana v. United States, 440 U.S. 147, 153-54, 99 S.Ct. 970, 59 L.Ed.2d 210 (1979). Accord Buckley v. Buckley, 889 S.W.2d 175, 179 (Mo.Ct.App.1994).
Under Missouri law, the district court's determination that the commission
Royal Ins. Co. of Am. v. Kirksville Coll. of Osteopathic Med., Inc., 304 F.3d 804, 807 (8th Cir.2002) (quoting James v. Paul, 49 S.W.3d 678, 682 (Mo.2001) (en banc)).
Deciding all of these factors were met, the district court concluded collateral estoppel precluded Ideker from reasserting her occupational disease claim in the district court. Ideker does not earnestly challenge the district court's evaluation of these factors. Rather, Ideker argues the district court erred in (1) "failing to recognize that collateral estoppel should not be applied when there has been an intervening change in the law," and (2) "failing to take into account the inequity that results from applying collateral estoppel under the facts of this case." Neither claim is availing.
Ideker argues collateral estoppel should not apply in her case because KCP & L and Amesquita changed the law between the district court's two dismissals. In support, Ideker relies on ASARCO, Inc. v. McNeill, 750 S.W.2d 122 (Mo.Ct.App. 1988), a tax case in which the appeals court observed "a judicial declaration intervening between ... two proceedings may so change the legal atmosphere as to render the rule of collateral estoppel inapplicable." Id. at 129 (quotation omitted) (noting the distinct application of collateral estoppel to serial tax cases). Ideker also relies on Restatement (Second) of Judgments § 28(2) (1982), which excepts an issue from preclusion if "[t]he issue is one of law and ... a new determination is warranted in order to take account of an intervening change in the applicable legal context or otherwise to avoid inequitable administration of the laws." See also Fielder v. Fielder, 671 S.W.2d 408, 411 (Mo.Ct. App.1984) ("[T]he Restatement (Second) rule has the virtue of preventing multiple litigation of an issue of law where the claims are closely related, but does not lock the parties into an erroneous conclusion of law for all time." (emphasis added)).
The district court initially accepted Ideker's change-of-law argument but, upon reconsideration, decided KCP & L and Amesquita did not change the law but instead simply clarified what the law had been since the legislature enacted the 2005 amendments. Aptly distinguishing Ideker's cited authorities as involving "something other than an incorrect decision," such as "the same type of transaction ... repeated on multiple occasions" or "a series of transactions occurring before and after a change in the law" like the annual tax assessments in ASARCO, the district court determined Ideker's reassertion of
Even if we assume, without deciding, the district court's state-law prediction was "incorrect," Ideker fails to show reversible error. Under Missouri law, "`[w]hether a prior judgment is legally correct is not at issue in applying the doctrine of collateral estoppel.'" In re Scarborough, 171 F.3d at 642 (quoting Buckley, 889 S.W.2d at 179); accord Gott v. Dir. of Revenue, 5 S.W.3d 155, 159 (Mo.1999) (en banc) ("The finality of a [judicial] decision ... does not depend on the correctness of that decision."). "[T]he fact that the judgment may have been wrong or rested on a legal principle subsequently overruled in another case" does not alter the preclusive effect "of a final, unappealed judgment on the merits." Federated Dep't Stores, Inc. v. Moitie, 452 U.S. 394, 398, 101 S.Ct. 2424, 69 L.Ed.2d 103 (1981); accord Ginters v. Frazier, 614 F.3d 822, 826 (8th Cir.2010) ("Even wrongly decided questions may be precluded from reconsideration under the doctrine.").
To decide otherwise would seed "`uncertainty and confusion'" and frustrate the purposes of collateral estoppel. Federated, 452 U.S. at 398-99, 101 S.Ct. 2424 (quoting Reed v. Allen, 286 U.S. 191, 201, 52 S.Ct. 532, 76 L.Ed. 1054 (1932)); accord Clark v. Clark, 984 F.2d 272, 273 (8th Cir.1993) ("[I]ssue preclusion prevent[s] relitigation of wrong decisions just as much as right ones. Otherwise, the doctrines would have no effect and be useless."); Buckley, 889 S.W.2d at 179 (explaining the purposes of collateral estoppel "are not served by permitting relitigation based on changes (if it is a change) in legislative or decisional law"). Any purported "mistake" the district court made in predicting Missouri law does not enable Ideker to "circumvent the dismissal in the first case" by refiling the same injury claim based on the same historical facts in a second case. Sexton, 152 S.W.3d at 274.
We also reject Ideker's assertion that "[t]he District Court erred in solely addressing the issue of whether it
Assuming Missouri requires some overarching requirement of equity or fairness, we discern no fundamental unfairness in applying collateral estoppel to the facts of this case. Ideker cannot remedy her failure to appeal the district court's dismissal by filing a second suit based on the same claim. See Baltimore S.S. Co. v. Phillips, 274 U.S. 316, 325, 47 S.Ct. 600, 71 L.Ed. 1069 (1927) ("A judgment merely voidable because based upon an erroneous view of the law is not open to collateral attack, but can be corrected only by a direct review and not by bringing another action upon the same cause.").
"An unappealed final judgment is conclusive of the matters adjudicated, and cannot be challenged in a separate proceeding."
We affirm.