Res judicata as affirmative defense and bar to re-litigation of claims

THE CONCEPT OF RES JUDICATA AND THE LEGAL EFFECT WHEN IT APPLIES "Res judicata precludes relitigation of claims that have been finally adjudicated, or that arise out of the same subject matter and that could have been litigated in the prior action." Amstadt v. U.S. Brass Corp., 919 S.W.2d 644, 652 (Tex. 1996). HOW TO ESTABLISH THE AFFIRMATIVE DEFENSE OF RES JUDICATA To prove res judicata, a party must establish: (1) a prior final judgment on the merits by a court of competent jurisdiction; (2) identity of parties or those in privity with them; and (3) a subsequent action based on the same claims as were raised or could have been raised in the first action. Id. PARTY STATUS OR IN PRIVITY WITH A PARTY IN THE PRIOR SUIT As a general rule, people are not bound by a judgment in a suit to which they were not parties. Id. Josephina does not contend that Jesus and Norma were parties to the prior divorce suit but rather that they were in privity with Juan and, therefore, are bound by the trial court's judgment in the prior suit. WHEN DOES PRIVITY APPLY? The Texas Supreme Court has said that people can be in privity in three ways: (1) by controlling the action even if they are not parties to it; (2) by having their interests represented by a party to the action; or (3) by acting as "successors in interest, deriving their claims through a party to the prior action." Id. at 653. PRIVITY DEFINED "Privity connotes those who are in law so connected with a party to a judgment as to have such an identity of interest that the party to the judgment represented the same legal right." Maxson v. Travis Co. Rent Account, 21 S.W.3d 311, 316 (Tex. App.--Austin 1999, pet. dism'd). SOURCE: 04-08-00394-CV (7/29/09) (San Antonio Court of Appeals)