Res judicata refers to the rule that a final judgment or decree on the merits by a court
of competent jurisdiction is conclusive of the rights of the parties or their privies in all
later suits on all points and matters determined in the former suit. For res judicata to
apply, the following elements must be present: (1) the judgment or order must be final;
(2) the judgment must be on the merits; (3) it must have been rendered by a court
having jurisdiction over the subject matter and the parties and (4) there must be,
between the first and second actions, identity of parties, of subject matter and of cause
of action.
The absolute identity of parties is not required for the principle of res judicata to apply.
A shared identity of interests is sufficient to invoke the application of this principle. The
proscription may not be evaded by the mere expedient of including an additional party.
Res judicata may lie as long as there is a community of interests between a party in the
first case and a party in the second case although the latter may not have
been impleaded in the first.