In an action prior to this one, Popular Dry Goods Company (Dry Goods) sued Davis (defendant) for property damages, which resulted from an automobile accident. In the same prior case, Davis alleged contributory negligence and joined Rios as a third party defendant. The jury in that case found that Dry Goods, Davis, and Rios were negligent. Dry Goods was denied recovery from Davis, and Davis was denied recovery from Rios. Rios (plaintiff) then instituted the present action against Davis. Davis alleged contributory negligence and objected to the action on the basis of res judicata and collateral estoppel, asserting that the present action was based on facts already presented and subject to findings in the prior action brought by Dry Goods. The district court held that the present action was barred on the basis of res judicata, and Rios appealed.