Privity

Privity is what allows preclusion rules to bind people who were not technically named in the earlier lawsuit. Examples include a successor to a business being bound by judgments against the original owner, or a trustee being bound by litigation involving a beneficiary. Without privity, only the actual parties to the first case are normally bound. Modern courts apply privity carefully and require a real legal connection, not just shared interests. The concept is also important in contract law, where it traditionally limited who could sue or be sued on a contract.