Res Judicata - in Common Law

In Common Law

The principle of res judicata may be used either by a judge or a defendant.

Once a final judgment has been handed down in a lawsuit, subsequent judges who are confronted with a suit that is identical to or substantially the same as the earlier one will apply the res judicata doctrine to preserve the effect of the first judgment.

A defendant in a lawsuit may use res judicata as defense. The general rule is that a plaintiff who prosecuted an action against a defendant and obtained a valid final judgment is not able to initiate another action versus the same defendant where:

• the claim is based on the same transaction that was at issue in the first action;
• the plaintiff seeks a different remedy, or further remedy, than what was obtained in the first action;
• the claim is of such nature as could have been joined in the first action.

Once a bankruptcy plan is confirmed in court action, the plan is binding on all parties involved. Any question regarding the plan which could have been raised may be barred by res judicata.

The Seventh Amendment to the United States Constitution provides that no fact having been tried by a jury shall be otherwise re-examinable in any court of the United States or of any state than according to the rules of law.

For res judicata to be binding, several factors must be met:

• identity in the thing at suit;
• identity of the cause at suit;
• identity of the parties to the action;
• identity in the designation of the parties involved;
• whether the judgment was final;
• whether the parties were given full and fair opportunity to be heard on the issue.

Regarding designation of the parties involved, a person may be involved in an action while filling a given office (e.g. as the agent of another), and may subsequently initiate the same action in a differing capacity (e.g. as his own agent). In that case res judicata would not be available as a defense unless the defendant could show that the differing designations were not legitimate and sufficient.