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Supreme Court Reverses Second Circuit Approach to Defense Preclusion in Win for Lucky Brand

As predicted following oral arguments, the U.S. Supreme Court today ruled that Marcel Fashion Groups, Inc. cannot preclude Lucky Brand Dungarees, Inc. from raising new defenses under federal preclusion principles, but left open the possibility that it may be appropriate to apply claim preclusion to defenses in certain circumstances. The opinion was authored by Justice Sotomayor. The Second Circuit decision was ultimately reversed and the case remanded, continuing the long battle between the two brands.

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