PRINCIPLE STATEMENT

Matters adjudged in a cause do not prejudice those who were not parties to it: Res inter alios judicatae nullum aliis praejudicium faciunt. The only reason which makes it necessary to make a person a party to an action is so that he should be bound by the result of the action.

RATIO DECIDENDI (SOURCE)

Per Uwaifo, JSC, in Okomu Oil Palm Company Limited v. Iserhienrhien (2001) NLC-1211995(SC) at p. 15; Paras B–E.
"Matters adjudged in a cause do not prejudice those who were not parties to it: Res inter alios judicatae nullum aliis praejudicium faciunt. The only reason which makes it necessary to make a person a party to an action is so that he should be bound by the result of the action. It would therefore be wrong to indirectly foist a person in the position of the respondent on the Federal Civil Service Commission as an employee when it neither employed him nor is there any evidence that it has record of him."
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EXPLANATION / SCOPE

The maxim res inter alios judicatae nullum aliis praejudicium faciunt means that matters adjudicated between parties do not prejudice non-parties. A person cannot be bound by a judgment to which they were not a party. The only reason for joining a party is to bind them by the result. It would be wrong to indirectly impose liability or status on a non-party. The principle protects persons from being affected by litigation they had no opportunity to participate in. Even if a person is closely related to a party, they are not bound unless they were represented or are in privity. The court will not extend the binding effect of judgments beyond the parties.

CASES APPLYING THIS PRINCIPLE