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Click here for the full text of this decision FACTS:In it long-running dispute with Amway, Proctor & Gamble sued the distributorship over rumors P&G said the company was spreading about P&G’s ties to Satanism. This suit was filed in Utah federal court in 1995 and alleged defamation, common law unfair competition, violations of the Utah Truth in Advertising Act, tortious interference, negligent supervision and violations of the Lanham Act, and vicarious liability arising out of the Satanism rumor. P&G later filed a third amended complaint alleging that Amway’s distribution method was an illegal pyramid scheme, and claiming fraud and product disparagement. The Utah court granted Amway’s motion to dismiss. Meanwhile, P&G filed another suit in the Southern District of Texas, alleging causes of action for unfair competition, negligent supervision, negligence, business disparagement, defamation, tortious interference with prospective business relations, vicarious liability, fraud, violations of RICO, violations of the Lanham Act, and violations of the Texas Business and Commerce Code. This case, too, was based on the Satanism rumor and the pyramid scheme claim, and also sought redress for further rumors that Crest toothpaste scratches teeth. The Texas district court held a trial in May 1999. The district court granted Amway’s motion for j.n.o.v. on the basis of the res judicata effect of the Utah court’s judgment. It also dismissed the case on the merits. In 2000, after the district court’s ruling, but before an appeal, the 10th U.S. Circuit Court of Appeals affirmed in part, and reversed and remanded in part the Utah judgment. This case was known as Haugen I. On appeal of the Texas district court decision, this court, in a case known as P&G I, affirmed the dismissal on the merits, but found no res judicata effect from the Utah case because of the 10th Circuit’s reversal. This court, therefore, vacated and remanded on the ground of res judicata. A second P&G appeal was considered by this court, but it did not directly concern Amway. On remand from the 10th Circuit, the Utah court dismissed all of P&G’s claims. Accordingly, the case on remand in Texas granted Amway’s motion for summary judgment and dismissed all of P&G’s remaining claims. P&G appeals. HOLDING:Affirmed. In P&G I, the court noted that this case is based on the same transactions and involves substantially the same parties, as the Utah suit. Having already decided that res judicata based on the Utah court’s judgment in Haugen I would have been appropriate but for the fact that the judgment had been reversed and remanded, the court now concludes that res judicata was appropriate based on the Utah court’s affirmed judgment on the merits. “Inasmuch as the Tenth Circuit recognized the potential difficulty of the Utah court’s basing its decision on res judicata and proceeded to consider and affirm the Utah court’s decision on the merits. This, highlights a flaw in P&G’s argument: The proper remedy for an allegedly erroneous judgment is direct appeal to the proper court, not an attempt to avoid the res judicata effect of that judgment in another suit against the same party for the same cause of action.” The court points out that when two suits proceed simultaneously, res judicata effect is given to the first judgment rendered. “A party gets only ‘one bite at the apple,’ ” the court adds, “ and is not allowed to take two bites simply because it attempts to take both at once rather than seriatim.” OPINION:Smith, J.; Garwood, Higginbotham and Smith, JJ.

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