In Bernhard v. Bank of America (1942) 19 Cal.2d 807, the Supreme Court explained the meaning of mutual collateral estoppel, stating that "only parties to the former judgment or their privies may take advantage of or be bound by it. . . . A privy is one who, after rendition of the judgment, has acquired an interest in the subject matter affected by the judgment through or under one of the parties, as by inheritance, succession, or purchase. The estoppel is mutual if the one taking advantage of the earlier adjudication would have been bound by it, had it gone against him." The Court further stated that, "he is bound by that litigation only if he has been a party thereto or in privity with a party thereto." (Id. at p. 812.)