{1} This сase explores the res judicata and collateral estoppel effects of the dismissal of a federal lawsuit on subsequent state court proceedings. Plaintiff originally sued her former employer, Danka Corporation, Inc., in the United States District Court for the District of New Mexico for sex discrimination in violation of Title VII, 42 U.S.C. §§ 2000e-2, 2000e-3 (2000), and in violation of the Equal Pay Act, 29 U.S.C. § 206(d) (2000). Plaintiff also brought two state law claims for negligent retention and supervision and intentional infliction of emotional distress in her federal lawsuit. All claims in the federal lawsuit were based primarily on the actions of Danka employеes. The federal district court granted Danka’s motion for summary judgment, and the Tenth Circuit Court of Appeals affirmed. Deflon v. Danka Corp.,
I. RES JUDICATA DOES NOT BAR PLAINTIFF’S CLAIMS BECAUSE DEFENDANTS ARE NOT IN PRIVITY WITH THE DEFENDANT IN THE FEDERAL SUIT
{2} Res judicata prevents a party or its privies from repeatedly suing another for the same cause of action. See Three Rivers Land Co. v. Maddoux,
{3} Because the parties do not dispute the facts in this case, we review the legal issue prеsented by the district court’s application of res judicata de novo. Anaya v. City of Albuquerque,
{4} Determining whether parties are in рrivity for purposes of res judicata requires a case-by-case analysis. In St. Louis Baptist Temple, Inc. v. FDIC, the Tenth Circuit provided insight into the flexible definition of privity:
There is no definition of “privity” which can be automatically applied in all cases involving the doctrines of res judicata and collateral estoppel. Thus, each case must be carefully examined to determine whether the circumstances require its application. This is so, notwithstanding the general assumption that res judicata applies only if the parties in the instant action were the same and identical parties in the prior action resulting in a judgment. Privity requires, at a minimum, a substantial identity between the issues in controversy and showing that the parties in the two actions are really and substantially in interest the same.
{5} The Tenth Circuit has indicated that privity does not exist where an initial lawsuit is brought against an employer and a second lawsuit is then brought against an employee acting in his or her individual capacity. Morgan v. City of Rawlins,
{6} Plaintiff in the present case asserts the basis of common law liability that was lacking in Lowell Staats: intentional interference with a contract. “Parties to a contract cannot bring an action for tortious interference with an existing contract against each other.” Salazar v. Furr’s,
{7} Plaintiff can only bring an intentional interference with a contract claim against the present Defendants in their individtial capacities. In Salazar, the United States District Court for the District of New Mexico held that the president of a corporation was not liable for tortious interference with a contract for firing a pregnant employee before her pension benefits could vest.
{8} In Ettenson, a former employee sued the defendant, the president and CEO of a magazine company, for civil conspiracy and tortious interference with a contract. The defendant allegedly offered the plaintiff stock in the company and assurances of long-term employment in lieu of salary increases, but then suddenly fired the plaintiff and tried “to squeeze him financially and force him to waive whatever legal claims he had arising out of the termination.” Ettenson,
{9} The idea behind the qualified immunity theory is that an officer acting on behalf of a corporation should have the authority to breach a corporation’s contract, leaving the corporation to answer for the authorized breach in a breach of contract action. See id. ¶ 16. An officer acting outside the scope of his or her employment and in his or her own private interest has no authority to breach the corporation’s contract, and that officer should not be able to hide behind a corporate shield for unauthorized conduct. See id. ¶ 17. We agree with the Court of Appeals that “[a] qualified privilege is more attune with our case law than a blanket privilege of absolute immunity would be,” id. ¶20, and we adopt the Court of Appeals’ analysis. In New Mexico, corporate officers may be liable for interfering with corporate contracts if such interference is in bad faith and against the best interеsts of the corporation. Id. ¶¶ 18,19.
{10} Determining whether a corporate officer’s actions fall outside the scope of authority “requires a court to delve into the motivating forces behind the officer inducing his corporation to breach its contractual obligations.” Id. ¶ 18. In other words, our trial courts must examine whether the corporate officer “acted to satisfy personal feelings ... or to serve his own private interest with no benefit to the corporation.” Id. ¶ 18 (quoting Ong Fling v. Ariz. Harness Raceway, Inc.,
{11} Defendants argue that, even if Plaintiff could not have sued Danka for tortious interference with a contract in federal court, Plaintiff should have brought the сlaim against Defendants under the federal court’s supplemental jurisdiction, referring to the supplemental jurisdiction statute, codified as 28 U.S.C. § 1367 (1990). The Court of Appeals found Defendants’ argument persuasive, noting that because the federal court exercised pendent jurisdiction over Plaintiffs state tort claims, there was no reason to believe that the federal court would have denied supplemental jurisdiction on the intentional interference claim. DeFlon v. Sawyers, No. 23,013, slip op. at 9. Instructive on this issue is the case of Salazar v. Murphy,
{12} In Salazar, we declined to make the permissive rules involving third party practice mandatory when they are, by their plain language, permissive. Id. at 31,
II. COLLATERAL ESTOPPEL DOES NOT APPLY BECAUSE PLAINTIFF’S INTENTIONAL INTERFERENCE WITH A CONTRACT AND CIVIL CONSPIRACY CLAIMS WERE NOT ACTUALLY AND NECESSARILY DECIDED IN FEDERAL COURT
{13} Like res judicata, collateral estoppel promotes judicial economy and protects parties from endless relitigation. Parklane Hosiery Co. v. Shore,
{14} Collateral estoppel traditionally has four elements. The wording of these four elements differs somewhat between New Mexico and the Tenth Circuit. Compare Shovelin v. Central N.M. Elec. Coop., Inc.,
{15} The Court of Appeals concluded that Plaintiffs claims for intentional interference with a contract and civil conspiracy were “actually and necessarily decided” by the federal court and that Plaintiff had a full and fair opportunity to litigate those issues. De-Flon, No. 23,013, slip op. at 11. Acсording to the Court of Appeals, because the state suit is grounded on the same set of facts as the federal suit, and because the federal court did not think those facts were sufficient to establish the causes of action that Plaintiff brought in federal court, collateral estoppel bars Plaintiffs state court claims for intentional interference with a contract and civil conspiracy. Id. Reviewing this legal issue de novo, see Anaya,
A. CURRENT STATE CLAIMS
{16} In her state complaint, Plaintiff alleged that Defendants “deliberately and intentionally drove Plaintiff away from her employment at Danka by using improper means.” In order to prove intentional interference with a contract, a plaintiff must establish that the defendant, “without justification or privilege to do so, induces a third person not to perform a contract with another.” Wolf v. Perry,
B. FEDERAL TITLE VII CLAIMS
{17} Examination of the sexual discrimination standards applicable to Plaintiffs Title VII claims reveals that her present claim for intentional interference with a contract could not have been actually and necessarily decided in federal court for two reasons: (1) a substantial portion of Plaintiffs evidence was excluded in federal court but would not be excluded in state court, and (2) the threshold showing for Title VII claims is different from what is needed to establish intentional interference with a contract. As to the first reason, the Tenth Circuit found that
{18} The second reason supporting our conclusion that Plaintiffs claim for intentional interference with a contract was not actually and necessarily decided in federal court is the fact that the threshold showing for Title VII claims is different from what is needed to establish intentional interference with an employment contract. The Tenth Circuit approached Plaintiffs allegations of sexual discrimination under Title VII as four separate causes of action: (1) sexual discrimination based on a hostile work environment; (2) sexual discrimination resulting in constructive discharge; (3) sexual discrimination based on disparate compensation; and (4) sexual discrimination based on a failure to promote. Deflon,
1. HOSTILE WORK ENVIRONMENT
{19} In order to prove sexual discrimination based on a hostile work environment theory, Plaintiff needed to establish that the alleged conduct “stemmed from a sexual animus” and “was severe or pervasive enough to create a work environment that was objectively and subjectively abusive and hоstile.” Deflon,
2. CONSTRUCTIVE DISCHARGE
{20} To succeed on her constructive discharge claim, Plaintiff needed to show that “the employer by its discriminatory acts has
{21} The Tenth Circuit found that the first of these constructive discharge theories failed because Plaintiff had not demonstrated a sexually hostile work environment, id., which it had previously defined as sexual harassment “severe or pervasive enough to create a work environment that was objectively and subjectively abusive and hostile.” Id. at 816. We have already indicated that Plaintiff did not have to prove sexual harassment creating an abusive and hostile work environment in order to succeed on her intentional interference with a contract claim. Therefore, the Tenth Circuit’s holding on this issue does not preclude Plaintiffs present claims.
? Regarding Plaintiffs second theory for constructive discharge, based on retaliatory discrimination, to establish a prima facie case of retaliatory discrimination in federal court, Plaintiff needed to show: “(1) protected opposition to discrimination or participation in a proceeding arising out of discrimination; (2) adverse action by the employer; and (3) a causal connection between the protected activity and the adverse action.” Id. at 819 (citing Sauers v. Salt Lake County,
3. DISPARATE PAY AND FAILURE TO PROMOTE
{23} To prove her claims for disparate pay and failure to promote, Plaintiff needed to demonstrate that Danka paid her less than similarly situated male employees and passed her over for promotions in favor of male employees. Deflon,
C. FEDERAL EQUAL PAY ACT CLAIM
{24} As was the case with the disparate pay claim above, the elements of intentional interference with a contract differ from what is needed to establish an Equal Pay Act violation. To succeed on her Equal Pay Act claim, Plaintiff needed to show that she performed work “substantially equal to that of the male employees” under similar working conditions for less pay. Deflon,
{25} Analyzing New Mexico law, the Tenth Circuit stated that in order to survivе summary judgment on her negligent supervision and retention claim Plaintiff had to show: (1) that a wrongful act committed by a Danka employee injured Plaintiff, and (2) that Danka’s supervision and retention of that employee was negligent. Deflon,
E. INTENTIONAL INFLICTION OF EMOTIONAL DISTRESS
{26} The Tenth Circuit stated that “the conduct about which [Plaintiff] complains was not sufficiently severe to give rise to a claim of intentional infliction of emotional distress.” Deflon,
CONCLUSION
{27} Because privity does not exist between the present Defendants and the defendant in the federal lawsuit, res judicata does not bar Plaintiffs state court lawsuit. We similarly find that collateral estoppel does not apply because Plaintiffs claims for intentional interference with a contract and civil conspiracy were not actually and necessarily decided in federal court. We remand to state district court for proceedings consistent with this opinion.
{28} IT IS SO ORDERED.
Notes
. We do not decide whether Plaintiff has met her burden to show that Defendants were acting outside the scope of their authority. This is in part a question of fact which we leave for the district court to determine.
. Generally a plaintiff must file a complaint with the Equal Employment Opportunity Commission within 180 days of the unlawful conduct. Deflon,
