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Buckhannon v. U.S. West Communications Inc.3/21/1996 nvitation for Monarch to commence an investigation of Buckhannon, and were not made for the purpose of investigating its own case with Buckhannon. We disagree.
Because his personal injury suit against U.S. West was based on allegations of occupational disability resulting from the bicycle incident, issues concerning Buckhannon's truthfulness and character did have "some relation" to the proceeding, and were made in the course of U.S. West's preparation for trial. Club Valencia Homeowners Ass'n, supra. Thus, we agree that the attorney absolute privilege applies to U.S. West's statements that might otherwise be considered defamatory.
The privilege not only shields attorneys from defamation claims arising from statements made during the course of litigation, but it also bars other non-defamation claims that stem from the same conduct. Barker v. Huang, 610 A.2d 1341 (Del. 1992) (absolute privilege extended to plaintiff's claims of invasion of privacy and intentional infliction of emotional distress); Western Technologies, Inc. v. Sverdrup & Parcel, Inc., 154 Ariz. 1, 739 P.2d 1318 (Ariz. App. 1986) (absolute privilege extended to plaintiff's claim for intentional interference with a contractual relationship).
However labeled, Buckhannon's claim is that U.S. West intentionally made derogatorily false statements about him, and that he was harmed by them. To the extent that such statements were made in the course of judicial proceedings, they are privileged regardless of the tort theory Buckhannon seeks to invoke. Thus, we conclude that the trial court properly dismissed Buckhannon's claim for intentional interference with contractual relations.
III.
However, we do agree with Buckhannon that the trial court erred in ruling he was collaterally estopped from making claims against U.S. West for malicious prosecution and abuse of process.
After Buckhannon dismissed his personal injury suit against U.S. West, the company moved for sanctions pursuant to ยง 13-17-101, C.R.S. (1987 Repl. Vol. 6A) and C.R.C.P. 11, claiming that the suit lacked substantial justification. The trial court ordered the parties to submit the sanctions dispute to arbitration. The specific issue to be decided by the arbitrator was whether Buckhannon's suit against U.S. West was substantially frivolous, groundless, or vexatious.
During the course of the arbitration proceedings, Buckhannon asserted that the reason U.S. West filed the motion for sanctions was to seek retribution against him for succeeding in the earlier PIP arbitration, and that the company was attempting to get a "second bite at the apple" by "retrying" its position that Buckhannon was not actually hurt in the bicycle incident.
The arbitrator ruled against U.S. West on its claim for sanctions, but also noted that "despite the protests of [Buckhannon], the evidence offered in this proceeding does not indicate that [U.S. West], in turn, has acted without substantial justification or in bad faith in pursuing sanctions." U.S. West argues on appeal that, because of this factual finding by the arbitrator, Buckhannon is collaterally estopped from litigating this issue in his present claims for malicious prosecution and abuse of process.
U.S. West contends that all elements for issue preclusion are present. Citing Industrial Commission v. Moffat County School District RE No. 1, 732 P.2d 616 (Colo. 1987), it asserts: (1) the issue is identical to an issue actually decided at a prior proceeding; (2) the party against whom estoppel is asserted is a party or in privity with a party in the prior proceeding; (3) there was
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