Real party in interest

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In law, the real party in interest is the one who actually possesses the substantive right being asserted and has a legal right to enforce the claim (under applicable substantive law). Additionally, the "real party in interest" must sue in his own name. In many situations, the real party in interest will be the parties themselves (i.e., plaintiff and defendant).

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In California law, when a case goes up on writ of mandate (California's version of mandamus ) the appellant goes first in the case caption on appeal as the petitioner, and the superior court becomes the respondent. The true opponent is then listed below those names as the "real party in interest". This is how a number of famous California cases like Burnham v. Superior Court of California (1990) ended up with such unusual names.

In Michigan law, the real-party-in-interest rule recognizes that litigation should be begun only by a party having an interest that will [ensure] sincere and vigorous advocacy. [1]

When a trustee is a party to a lawsuit, the real party in interest is the beneficiary of the trust. In the United States, Rule 17 of the Federal Rules of Civil Procedure expressly provides that trustees are the real party in interest when it is necessary to sue on behalf of the estate. A beneficiary may sue under these circumstances only when the trustee refuses or neglects to bring suit.

When funds belonging to a party are held on account, but not necessarily in trust, by a financial institution (e.g., a bank checking account is garnished by a third party who claims a valid unpaid debt) the bank is typically sued as nominal defendant. Of course, the real party in interest is the owner of the account, who has an absolute right to intervene and protect his assets.

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Provident Tradesmens Bank & Trust Co. v. Patterson, 390 U.S. 102 (1968), is a United States Supreme Court decision which clarified the meaning and application of Rule 19 of the Federal Rules of Civil Procedure. In a unanimous decision, the Court reversed the judgment of the United States Court of Appeals for the Third Circuit and held that an automobile owner's interest in a suit against his insurer did not make him an "indispensable party" to that suit under Rule 19. The Court also made clear that Supreme Court precedent predating the enactment of the Federal Rules of Civil Procedure did not create any substantive right in non-parties to be joined in case, as the Court of Appeals had apparently thought.

<i>Boardman v Phipps</i>

Boardman v Phipps [1966] UKHL 2 is a landmark English trusts law case concerning the duty of loyalty and the duty to avoid conflicts of interest.

In real estate in the United States, a deed of trust or trust deed is a legal instrument which is used to create a security interest in real property wherein legal title in real property is transferred to a trustee, which holds it as security for a loan (debt) between a borrower and lender. The equitable title remains with the borrower. The borrower is referred to as the trustor, while the lender is referred to as the beneficiary.

Mortgage Electronic Registration Systems, Inc. (MERS) is an American privately held corporation. MERS is a separate and distinct corporation that serves as a nominee on mortgages after the turn of the century and is owned by holding company MERSCORP Holdings, Inc., which owns and operates an electronic registry known as the MERS system, which is designed to track servicing rights and ownership of mortgages in the United States. According to the Department of the Treasury, the Board of Governors of the Federal Reserve, The Federal Deposit Insurance Corporation and the Federal Housing Finance Agency, MERS is an agent for lenders without any reference to MERS as a principal. On October 5, 2018, Intercontinental Exchange and MERS announced that ICE had acquired all of MERS.

<i>Schmidt v Rosewood Trust Ltd</i>

Schmidt v Rosewood Trust Ltd[2003] UKPC 26 is a judicial decision concerning the information rights of a beneficiary under a discretionary trust. Although the judgment involved a question as to the law of the Isle of Man, the Privy Council's judgment in Schmidt v Rosewood was adopted into English law by Briggs J in Breakspear v Ackland[2008] EWHC 220 (Ch).

Constructive trusts in English law are a form of trust created by the English law courts primarily where the defendant has dealt with property in an "unconscionable manner"—but also in other circumstances. The property is held in "constructive trust" for the harmed party, obliging the defendant to look after it. The main factors that lead to a constructive trust are unconscionable dealings with property, profits from unlawful acts, and unauthorised profits by a fiduciary. Where the owner of a property deals with it in a way that denies or impedes the rights of some other person over that property, the courts may order that owner to hold it in constructive trust. Where someone profits from unlawful acts, such as murder, fraud, or bribery, these profits may also be held in constructive trust. The most common of these is bribery, which requires that the person be in a fiduciary office. Certain offices, such as those of trustee and company director, are always fiduciary offices. Courts may recognise others where the circumstances demand it. Where someone in a fiduciary office makes profits from their duties without the authorisation of that office's beneficiaries, a constructive trust may be imposed on those profits; there is a defence where the beneficiaries have authorised such profits. The justification here is that a person in such an office must avoid conflicts of interest, and be held to account should he fail to do so.

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<i>Westdeutsche Landesbank Girozentrale v Islington LBC</i> English legal case

Westdeutsche Landesbank Girozentrale v Islington LBC[1996] UKHL 12, [1996] AC 669 is a leading English trusts law case concerning the circumstances under which a resulting trust arises. It held that such a trust must be intended, or must be able to be presumed to have been intended. In the view of the majority of the House of Lords, presumed intention to reflect what is conscionable underlies all resulting and constructive trusts.

<i>Foskett v McKeown</i>

Foskett v McKeown[2000] UKHL 29 is a leading case on the English law of trusts, concerning tracing and the availability of proprietary relief following a breach of trust.

McDonald v Horn [1995] 1 All ER 961 is an English trusts law case on pensions, relevant for UK labour law. It enables the beneficiaries of a pension fund to be indemnified for costs in bringing actions for breach of trust, fiduciary duty or the duty of care against the trustees or directors of a pension fund.

<i>Byers v Saudi National Bank</i>

Byers v Saudi National Bank[2022] EWCA Civ 43 is a decision of the English Court of Appeal in the long running litigation between the liquidators of SAAD Investments Company Limited and various parties relating to the alleged defrauding of the insolvent company by one of its principals.

References

  1. "Standing and Real Party In Interest Requirements". Michigan Judicial Institute.