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I. Definition and Purpose

Res judicata, meaning "matter adjudged" or "thing judicially acted upon or decided," is a doctrine of civil law and procedure. It is founded upon two grounds: public policy dictating an end to litigation and individual hardship preventing parties from being vexed twice for the same cause. The doctrine rests on the principle that parties ought not to be permitted to litigate the same issue more than once. Res judicata encourages reliance on judicial decisions and frees courts to resolve other disputes.

II. Essential Requisites For the doctrine of res judicata to apply, the following essential requisites must be present:

1. The former judgment or order must be final.
2. The judgment must have been rendered by a court having jurisdiction over the subject matter and the parties.
3. The judgment must be on the merits.
4. There must be identity of parties, subject matter, and causes of action between the first and second actions.

III. Two Main Concepts of Res Judicata

The doctrine of res judicata embraces two distinct concepts:

Bar by Former Judgment (Claim Preclusion)

This aspect of res judicata, also known as merger or bar, bars a second action upon the same claim, demand, or cause of action. It applies when the first and second actions involve the same claim or cause of action. A judgment on the merits is an absolute bar to a subsequent action between the same parties or their privies regarding the same claim or demand. The prior judgment is conclusive not only on the matters actually presented and determined but also on those which could have been raised and decided in the first action.

Conclusiveness of Judgment (Issue Preclusion/Collateral Estoppel)

This aspect, known as conclusiveness of judgment or collateral estoppel/issue preclusion, applies when there is no identity of causes of action between the first and second cases, but there is identity of parties and subject matter. The prior judgment is conclusive only as to those matters actually and directly controverted and determined in the former action. It precludes relitigation of particular facts or issues already determined in a prior case on a different claim or cause of action.

IV. Distinction Between the Concepts

The distinction between bar by former judgment and conclusiveness of judgment lies in the identity of the issues or causes of action. Bar by former judgment requires identity of causes of action, making the judgment conclusive on both issues raised and those that could have been raised. Conclusiveness of judgment applies when there is no identity of causes of action, but only identity of parties and subject matter, and it is conclusive only as to the issues actually and directly litigated and determined in the prior case.

V. Res Judicata and Dismissal for Lack of Jurisdiction

A judgment dismissing an action for lack of jurisdiction over the subject matter does not operate as res judicata on the merits. Res judicata applies only when the dismissal is on the merits of the case.