Does a tribunal determination prevent someone from successfully suing you?

April 3, 2025 | By Sunny Uppal

Issue estoppel is a legal doctrine which can stop a legal proceeding dead in its tracks due to an issue in the legal proceeding having previously been decided by an administrative tribunal. For issue estoppel to apply, a party must establish the following preconditions:^[1]

a) The issue is the same as an issue decided in a prior “judicial decision;”
b) The prior “judicial decision” was final; and
c) The parties to the administrative tribunal proceeding and the court proceeding are the same, or their privies.

Notwithstanding the above preconditions being satisfied, the Court may still decide not to apply the doctrine of issue estoppel (thereby allowing an individual to relitigate an issue that was previously decided in an administrative tribunal hearing) if it determines relitigating the issue is in the “interest of justice.”^[2]

This article will briefly explain the preconditions that must be satisfied for the doctrine of issue estoppel to apply and when a Court will decide to exercise its discretion to not apply the doctrine of issue estoppel.  Importantly, this article relates only to the doctrine of issue estoppel as it applies to previous administrative decisions; different considerations come into play when it comes to previous court decisions.

a) The issue is the same as an issue decided in a prior “judicial decision”

The first precondition that must be satisfied for the doctrine of issue estoppel to apply is that the issue before the Court must be the same as an issue having been previously decided in a prior judicial decision. The type of “issues” which may trigger the application of the doctrine of issue estoppel are the legal conclusions and the findings of fact (and the findings of mixed fact and law) made in the previous judicial decision which were “fundamental” to the previous judicial decision. Courts have interpreted the term “fundamental” to mean necessary to arrive at the previous judicial decision.^[3]

b) The prior judicial decision is final

The second precondition that must be satisfied to trigger the application of the doctrine of issue estoppel is that the previous decision was a final judicial decision. The court will consider a prior decision to have been “judicial” when:^[4]

• The decision was made by a body capable of receiving and exercising adjudicative authority;
• The decision was required to be made in a judicial manner; and
• The decision was in fact made in a judicial manner.

A decision that is made in a “judicial manner” is a decision which is reached through making findings of fact and applying an objective legal standard to those facts.^[5]

c) The parties to both proceedings must be the same, or their privies

The third precondition that must be satisfied to trigger the application of the doctrine of issue estoppel is that the parties to the current proceeding, or their privies, must be the same as those in the previous administrative tribunal decision.^[6]

Judicial Discretion

If the court determines the three preconditions of the doctrine of issue estoppel have been satisfied, the court will then decide whether the doctrine of issue estoppel ought to be applied or whether its application will give rise to an injustice. In assessing whether the application of the doctrine of issue estoppel will amount to an injustice, the court will often consider the following factors: ^[7]

• The limits on awards that the administrative body could make;
• Whether the statute granting the administrative body authority shows legislative intent to preclude civil action;
• The purpose of the administrative proceeding, including the effect that allowing a judicial body to rehear an administrative proceeding would have on the quick and inexpensive route that most administrative proceedings aim to offer;
• The convenience of hearing all of the party’s claim in one proceeding;
• The procedural differences between the administrative body and the court (i.e. discovery or cross-examination rights);
• The availability of an appeal; and
• The circumstances giving rise to the prior administrative proceedings (e.g., whether the party was vulnerable at the time of commencing the administrative proceeding).

Conclusion

In conclusion, the doctrine of issue estoppel is a legal doctrine which may prevent an individual from bringing a lawsuit against you. The doctrine of issue estoppel is triggered when (1) the issue is the same as an issue decided in a prior “judicial decision,” (2) the “judicial decision” was final; and (3) the parties to the administrative tribunal proceeding, or their privies, and the court proceeding are the same. Notwithstanding these preconditions having been satisfied, the Court may exercise its discretion to not apply the doctrine of issue estoppel if it determines that it is in the “interests of justice” that the issue be relitigated.

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[1] Toronto (City) v. CUPE, Local 79, 2003 SCC 63 at para. 23.
[2] Danyluk v. Ainsworth Technologies, 2001 SCC 44 at para. 33.
[3] Danyluk v. Ainsworth Technologies, 2001 SCC 44 at para. 24.
[4] Danyluk v. Ainsworth Technologies, 2001 SCC 44 at para. 35.
[5] Metropolitan Toronto Condominium Corp No. 1352 v. Newport Beach Development Inc., 2012 ONCA 840 (CA) at para. 4.
[6] Toronto (City) v. CUPE, Local 79, 2003 SCC 63 at para. 23.
[7] Danyluk v. Ainsworth Technologies, 2001 SCC 44 at paras. 64-81.

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