New opinion — issue preclusion through prior state-court litigation

Today’s only published opinion arises from a utility-rate dispute. A state utility commission ruled that certain utility costs could not be passed along to customers, and the companies’ challenge to that ruling failed in state court and Scotus denied cert. The companies then sued the commission in federal court, effectively seeking to set aside the state result. The district court dismissed, and today a divided CA3 panel affirmed, holding that the companies claims did not survive issue preclusion.

The case is Metropolitan Edison Co. v. Pa. Public Utility Commission. Opinion by Jordan, joined by Ambro. Dissent by Roth, who argued that state-court application of federal agency rulings should be subject to collateral attack in federal court. Arguing counsel were John Shepherd of Skadden Arps for the companies and Aspassia Staevska for the commission.