What is res judicata (claim preclusion) and its elements?

• A. Final judgment on the merits, identity of parties, and same claim.
• B. Final judgment, different parties, and different claim.
• C. Only final judgment is required.
• D. Interlocutory orders are sufficient.

Answer: (A)

Res judicata (claim preclusion) means a matter that has been finally decided by a court cannot be relitigated between the same parties or their privies. The three essential components are:

• A final judgment on the merits. The prior decision must resolve the substantive issues, not just dismiss the case on a technicality or for some non-merits reason. A judgment that is not final on the merits, or a non-final order, does not trigger preclusion.

• Identity of parties (or their privies). The second lawsuit must involve the same people who were in the first suit, or those in a legal relationship with them (privity), so that the interests and obligations are essentially the same.

• The same claim or cause of action. The second suit must be about the same relief, or arise from the same transaction, occurrence, or nucleus of operative facts as the first suit.

Thus, the best answer reflects those three elements together. In contrast, a scenario with different parties (unless privity applies), or with a different claim, or relying on an interlocutory order, would not meet res judicata.