A third party complaint is filed by a defendant or plaintiff to involve a third party in a lawsuit, claiming they are liable for damages. Courts decide whether to allow the claim, and a third party has the right to defend themselves. Third-party claims often arise in insurance disputes and are distinct from interpleader actions.
In a civil suit, a third party complaint is a procedural motion typically filed by a defendant for the purpose of compelling a third party to participate in the suit. Usually, the defendant argues that the third party is liable for all or some of the damages that the plaintiff is seeking to recover from the defendant. A plaintiff can also bring this type of claim. This normally occurs when the defendant has filed a counterclaim against the plaintiff, and the plaintiff claims that a third party is liable in whole or in part for any damages resulting from the counterclaim. The process of filing a third party complaint can also be referred to as an implader.
As a general rule, courts may decide whether to allow a plaintiff or a defendant to bring a third party claim. In making this choice, the court may consider whether adding the third party will significantly delay or complicate the case, confuse the jury, or negatively impact one party’s case. If a lower court refuses to grant the complaint, the decision can be appealed to a higher court. Normally, an appellate court will only reverse a decision if the lower court abuses its discretion.
A third party who has been involved in a lawsuit generally has the right to defend himself. This includes raising any applicable defenses against the plaintiff and against the defendant. If the court finds that the third party is not liable, the third party is not required to compensate the plaintiff or the defendant for any injuries.
Third-party claims arise most frequently in disputes relating to insurance policies. If a driver runs a red light and hits a plaintiff, for example, the plaintiff can sue the driver to recover any resulting damages. The driver can lodge this type of claim against his insurance company, if he has taken out an automobile insurance policy. The insurance company would then be sued and required to pay all or some of the plaintiff’s damages, consistent with the driver’s insurance policy.
A third party claim is distinct from interpleader, which is a procedure that occurs when two parties bring the same claim against a third party. With an interpleader action, the court determines which of the claimants has the right to actually bring the claim. Like third party claims, the interlocutor often arises in the insurance context, particularly when a person dies and multiple parties claim to be the deceased’s beneficiaries under an insurance policy. In this scenario, the insurance company can initiate a hearing action so that all beneficiaries can dispute the matter at the same time.
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