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Source: Barron's Dictionary of Legal Terms, Steven H. Gifis, 5th Edition; ©
"Privity exists where the nonparty's interests were represented adequately by the party in the original suit. Privity also exists where a party to the original suit is "so closely aligned to a nonparty's interest as to be his virtual representative." United Merchants Mfrs. v. Sanders, 508 So.2d 689, 692 (Ala. 1987)."
A person who was not a named party to an action will nonetheless be subject to collateral estoppel arising from that action if that person was in privity with a party or virtually represented by a party.For one to be in privity with one who is a party to a lawsuit or for one to have been virtually represented by one who is a party to a lawsuit, one must have an interest in the action such that she will be bound by the final judgment as if she were a party.Stogniew, 656 So.2d at 920. "The concept of `privity' refers to a cluster of relationships . . . under which the preclusive effects of a judgment extend beyond a party to the original action and apply to persons having specified relationships to that party. . . ." Restatement (Second) of Judgments: ch. 1, Scope. "One party may be said to be a privy of another whenever there is a mutual or successive relationship to the same right." Osburn v. Stickel, 187 So.2d 89, 91-92 (Fla. 3d DCA 1966); see also EEOC v. Pemco Aeroplex, Inc., 383 F.3d 1280, 1286 (11th Cir. 2004) ("`Privity' is a flexible legal term, comprising several different types of relationships and generally applying when a person, although not a party, has his interests adequately represented by someone with the same interests who is a party."). The existence of a virtual representation relationship is based on "closely aligned" interests of a party and a person who is not a formal party. Stogniew, 656 So.2d at 920 (quoting Aerojet-Gen. Corp. v. Askew, 511 F.2d 710, 719 (5th Cir. 1975)); see also Pemco, 383 F.3d at 1287 (setting forth "four factors [used] in determining whether there is virtual representation: whether there was `participation in the first litigation, apparent consent to be bound, apparent tactical maneuvering, [and] close relationships between the parties and nonparties'") (citation omitted).
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