privy

A privy is a person who receives all rights and obligations of another legal entity. Those rights and obligations may devolve by an assignment, res judicata, will or operation of law. A privy is one who claims a title or right through, under or on behalf of another person. Put simply, the law views privies as one person.

There are 3 established categories of how a person may be a privy of another: ‘blood, title or interest’. That is those deriving the status of a privy (1) by ancestry or heirs; (2) upon insolvency or death, and (3) by legal or beneficial interest by operation of law such as a contract, a res judicata or the subject matter thereof.

A privy will often acquire its status by an assignment of rights under a contract. Assuming that those rights acquired were subject to conditions imposed by the assignor, those conditions will also apply to the assignee, as the privy of the assignor.

An agreement to act as a surety for another does, mere relationship of principal and agent not render one a privy, however a trustee suing on the part of beneficiary, an employer who bring proceedings for a employee. Furthermore, a person engaging another to raise a claim against another person may also be found to be a privy of the person actually taking part in litigation.

Usage: The privy was not entitled to sue the owner of the intellectual property rights as its successor in title had previously litigated the claim.

Related Words: successor in title; privity of contract; doctrine of privity; assignor; assignee; contract; res judicata; estoppel; .