ON APPEAL FROM THE DISTRICT COURT OF THE VIRGIN ISLANDS C.A. No. 79-0113
Before Adams, Maris and Sloviter, Circuit Judges.
This appeal presents the question whether, under Virgin Islands law, a party to a proceeding seeking to partition jointly owned real property may relitigate the validity of his marriage to the other owner of the property when that issue was explicitly adjudicated in a prior divorce proceeding, a portion of which was vacated and remanded by this Court. Secondary questions concern whether the Territorial Court of the Virgin Islands erred in the legal standards applied in partitioning the property and in awarding attorneys' fees to Mrs. Dyndul as the prevailing party in the partition proceeding.
The district court, acting as an appellate tribunal from the territorial court, affirmed the territorial court's order granting a motion to strike the portion of Mr. Dyndul's amended complaint that placed in issue the validity of the marriage, and also affirmed the judgment partitioning the property and awarding attorneys' fees. We in turn affirm.
In 1975, Irena Dyndul filed a complaint seeking a divorce from Michael Dyndul. In his answer to Mrs. Dyndul's complaint for divorce, Mr. Dyndul alleged that the marriage was void because he was legally married to another woman who was alive and known to Mrs. Dyndul at that time. It is clear from the record that this issue was litigated indeed it seemed to have consumed the major portion of the time at trial*fn1 and the trial judge made a specific finding of fact that a valid marriage between Irena and Michael Dyndul had occurred.*fn2 The district court granted a decree of divorce on October 3, 1975. In the decree, the district court ordered payment of alimony and support, gave Mrs. Dyndul exclusive right to occupy the parties' home in the Virgin Islands, and ordered her to quitclaim all title and interest in the parties' real property in Wisconsin and Florida. Mrs. Dyndul appealed the distribution of property to this Court on the ground that it was inequitable, but no cross-appeal was filed by Mr. Dyndul.
In Mrs. Dyndul's appeal, we did not address the only issue contested by the parties whether the trial court's division of property was inequitable because of a more fundamental problem: "lack of statutory authority to distribute real property other than the homestead." Dyndul v. Dyndul, 541 F.2d 132, 133 (3d Cir. 1976). There was no challenge to the district court's jurisdiction to grant a divorce, and neither party appealed the divorce itself. We simply vacated paragraph 4 of the decree, which disposed of property outside the court's jurisdiction, and remanded the case so that the district court would be able to adjust any further financial equities to compensate for the portion of the decree dealing with the two properties outside the Virgin Islands that was stricken.
On remand to the district court, Mrs. Dyndul moved for modification of the property settlement. The court postponed consideration of the motion to modify until a partition action in the territorial court could be filed by Mr. Dyndul to deal with the homestead property of the parties that was located in the Virgin Islands. In the amended complaint in the partition action, Mr. Dyndul alleged that this Court had vacated the entire divorce decree, and he proceeded to attack anew the validity of the parties' marriage. On Mrs. Dyndul's motion, Mr. Dyndul's allegation regarding the prior divorce was stricken from the complaint as res judicata.*fn3
The territorial court then proceeded to partition the jointly owned homestead property, and also awarded Mrs. Dyndul attorneys' fees. After affirmance on all grounds by the district court, Mr. Dyndul brought this appeal.
In challenging his preclusion from relitigating the validity of his marriage, Mr. Dyndul argues three points: (1) The decree of divorce is not res judicata because it was vacated by this Court on appeal. (2) Even if the divorce portion of the decree was not vacated, the order as a whole is not within the rules of res judicata because it is not final the case having been remanded to the district court. (3) Even if the common law of res judicata would be otherwise applicable, it has been abrogated as to the issue here by statute.
Mr. Dyndul's contention that the grant of divorce to Mrs. Dyndul was vacated is not correct because, as previously indicated, Mr. Dyndul did not appeal from the divorce decree. The issue of the validity of the marriage was not before us on the first appeal and, indeed, was in no way contested. There was thus no need specifically to affirm that portion of the district court's order. Because our judgment did not purport to vacate the grant of divorce, that portion of the decree is subject to the rules of res judicata.
The general rule of issue preclusion is that "(w)hen an issue of fact or law is actually litigated and determined by a valid and final judgment, and the determination is essential to the judgment, the determination is conclusive in a subsequent action between the parties, whether on the same or a different claim." Restatement (Second) of Judgments § 68 (Tent. Draft No. 1, 1973).*fn4
The issue Mr. Dyndul now seeks to litigate was, as we have indicated, actually litigated previously and its determination was necessary to the judgment.*fn5 Furthermore, the judgment as to the divorce was clearly within the court's subject matter jurisdiction.*fn6 The remaining question is whether the judgment was "final" for res judicata purposes.
"Finality" for purposes of issue preclusion is a more "pliant" concept than it would be in other contexts.*fn7 The Restatement of Judgments mandates a pragmatic approach with reference to judicial policy rather than to finality in a technical sense. "Final judgment" "(with respect to issue preclusion)' includes any prior adjudication of an issue in another action ...