res judicata

In English law, res judicata refers to a decision which has been decided once and for all by a judicial tribunal, such that the decision may only be challenged on appeal by another judicial tribunal higher in the court hierarchy.

For example, a decision made at first instance by a High Court judge may only be challenged by appealing to the Court of Appeal, and then to the Supreme Court. Other than this procedure through the court hierarchy, the subject matter of the decision may not be re-litigated by the parties at a later date. In the event that a party attempts to do so, the other party would plead cause of action estoppel or issue estoppel to defend and prevent the further set of legal proceedings. The principle applies to international litigation and disputes in respect to foreign judgments in the same way as the principles apply to judgments made by English Courts.

Public Policy

As a matter of public policy that disputes are not re-raised and re-heard as a general rule to bring finality to disputes. Court decisions are seen as a definitive settlement of the dispute by a judicial decision. In Latin, the term means "a thing adjudicated", and extends to disputes relating to the same facts or series of transactions, even those which could have been pleaded but were not in the first set of legal proceedings.

The principle prevents the same claim from being raised again between the parties to prior litigation. For example, the claimant raising the same claim for recovery or damages or other relief) or calling into question the correctness of the earlier decision (for example, where the defendant argues that a damages award is excessive).

The principle applies to matters of fact and law, and mixed questions of fact and law. When a judgment is entered in respect to the facts, the cause of action and legal rights of the parties are extinguished and said to 'merge in the judgment' (ie the doctrine of merger). The correctness of the decision is irrelevant, other than on appeal. A final decision must be appealed in order to be set aside the judgment or have it varied.

As such, judgments operate estoppels to further litigation and extinguishes the legal rights that gave rise to the litigation in the first place.

Thus, the key features are that:

1. it prevents a party from denying in later litigation the correctness of the decision in the previous litigation; and
2. the cause of action merges in the judgment such that the cause of action is extinguished.

Res judicata should be distinguished from estoppel by record. When a matter is caught by the doctrine, it is the res judicata that estops further litigation, and not the fact that a record was made of the decision.

Making out Res Judicata

The party seeking to rely on it in subsequent litigation must show that the previous decision was:

1. a judicial decision;
2. made by a tribunal having jurisdiction over the parties;
3. final and conclusive;
4. made on the merits of the case; and
5. covered the same question as it raises in the later litigation.

Furthermore, the decision parties to the later decision must have been parties (or 'privies') to the earlier decision where the decision was made in personam or show that the decision was made in rem. It is the record of the decision that is conclusive of what was adjudicated during the previous litigation.

There are two types, each with the same effect: issue estoppel and cause of action estoppel. Cause of action estoppel prevents a party asserting the existence of a particular cause of action, as the particular cause of action has previously been determined. Issue estoppel applies where some fundamental issue forms part of the issues determined in earlier proceedings.

A decision for the purposes of res judicata may be a decree, order, judgment or sentence. What matters is that the decision is a judicial decision as opposed to an administrative decision.

Practical Effect of Res Judicata

Res judicata is the reason why judicial decisions are different to almost any other type or kind of decision. A judicial decision is final and conclusive of the rights between the parties to litigation – it marks the termination of disputes of the litigation, subject to an appeal. Consequently litigants are not exposed to a multiplicity of proceedings on the same facts.

There are limited exceptions, such as in running down cases, the application to revenue authorities and divorce proceedings, particularly in cases involving misconduct.