Food for Health Co. v. 3839 Joint Venture
In Food for Health Co. v. 3839 Joint Venture, 129 Ariz. 103, 106-07, 628 P.2d 986,, 129 Ariz. 103, 628 P.2d 986, 989-90 (App. 1981), the appellant had argued that the prior judgment could have no preclusive effect for collateral estoppel purposes because the parties reached a compromise while the case was pending appeal and stipulated to have the appeal dismissed with prejudice. 129 Ariz. at 106, 628 P.2d at 989.
The court disagreed and held that a party who settles an action while on appeal and then dismisses the appeal is bound by the judgment. Id.
Without citing any authority, the court then stated "the parties to the stipulation could have provided that the judgment be vacated but they did not do so." Id.