What is the test for the doctrine of action estoppel?

At ¶79 in Rivet, Arnold-Bailey J., relying on Doering v. Grandview (Town), identifies four criteria that must be present for the doctrine of action estoppel to apply: 1. There must be a final decision of a court of competent jurisdiction in the prior action; 2. The parties to the subsequent litigation must have been parties to or in privy with the parties to the prior action (mutuality); 3. The cause of action in the prior action must not be separate and distinct; and 4. The basis of the cause of action and the subsequent action was argued or could have been argued in the prior action if the parties had exercised reasonable diligence.