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![]() Privity connotes those who are so connected with a party to the judgment in the law such that the party to the judgment represented the same legal right. Res judicata applies when a party in the second suit is in privity with a party in the first suit. In determining whether the facts arose out of a single transaction, Texas courts consider whether the facts are related in time, space, origin, or motivation, and whether they form a convenient unit for trial. The main concern is whether the cases share the same nucleus of operative facts. Under this approach, Texas courts examine the factual bases, not the legal theories, presented in the cases. The transactional approach results in claim preclusion if a defendant does not bring as a counterclaim any claim arising out of the transaction or occurrence that is the subject matter of the opposing party’s suit. Texas follows the transactional approach to res judicata. Res judicata, also known as claim preclusion, prevents the relitigation of a claim or cause of action that was adjudicated and resolved by a final judgment, as well as all related matters that with the use of diligence could or should have been litigated in the prior suit. Moreover, although mutuality is no longer required between the parties, the party against whom collateral estoppel is asserted must have been a party or in privity with a party in the prior litigation.
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