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A collusive lawsuit, collusive action or friendly suit is a lawsuit in which the parties to the suit have no actual quarrel with one another, but one sues the other to achieve some result desired by both. [1]
The law condones this practice because there are several benefits to settling a lawsuit as opposed to settling a claim outside of a lawsuit. First, if one of the parties to the claim is a minor, they usually cannot settle the claim without the appointment of a guardian ad litem to review and accept the settlement. Once the suit is filed, and the settlement is reviewed by the ad litem who considers the best interest of the child, the parties can then file a joint motion for the court to render judgment, which would then be binding on all parties regardless of their minority. When there is a judgment, the parties also gain the defense of res judicata if sued again on the same topic.
Friendly suits are generally not within the jurisdiction of the federal judiciary of the United States, as they do not constitute a true "case or controversy" under Article III of the United States Constitution; [2] see United States v. Johnson . In practice, however, friendly suits are rarely explicitly described as such, and they could easily slip into the federal judicial system through some casual omissions. Moreover, the "case or controversy" requirement of Article III does not bind the judiciaries of the states, which are free to impose their own restrictions on friendly suits (or none at all).
For example, if two people think a law is unconstitutional, one might sue another in order to put the lawsuit before a court which can rule on its constitutionality. Because courts generally reserve jurisdiction for situations in which there is an actual case or controversy – i.e., a real dispute between the parties – where such a suit is suspected, the court may refuse to exercise jurisdiction. For example, the European Court of Justice does not hear preliminary references arising out of hypothetical disputes. [3]
Another form of collusive lawsuit involves fraud, where two persons agree to fake an accident, so that the "victim" can sue the other person in order to collect from the other person's insurance. This is a crime, and insurance companies investigate claims to determine that no collusion is involved. Because of the fear of collusive suits, many jurisdictions have, at various times, prohibited spouses from suing one another or prohibited children from suing their parents. Also, many jurisdictions have had guest statutes which make it difficult for a passenger in a non-commercial vehicle to sue the driver if the passenger is injured due to the driver's negligence.
Another example is in divorce, in those jurisdictions where fault remains as a condition before commencement of an action for breach of the marriage contract.
Sham friendly lawsuits can help further false advertising claims. In 2015, Pharmaceutical Corporation Gilead Sciences was sued by an organization it funded, the AIDS Healthcare Foundation, on the basis of statements of Treatment Action Group, another organization Gilead funded, asserting Gilead's older drug Tenofovir Disoproxil was "less safe" than its newer counterpart Tenofovir alafenamide. [4] The old drug was going off-patent and by 2023, generic versions cost $400 vs. $2,160/month for the new branded version. The active ingredient in both drugs is exactly the same and both versions have virtually identical safety profile, but the friendly lawsuit lead to widespread market perception the old drug was not safe thus creating demand for the new expensive version. The lawsuit also spurred numerous recruitment advertisements from class action lawyers looking for Tenofovir disoproxil victims - free false advertising against Gilead's generic competitor.
A class action, also known as a class-action lawsuit, class suit, or representative action, is a type of lawsuit where one of the parties is a group of people who are represented collectively by a member or members of that group. The class action originated in the United States and is still predominantly an American phenomenon, but Canada, as well as several European countries with civil law, have made changes in recent years to allow consumer organizations to bring claims on behalf of consumers.
Personal jurisdiction is a court's jurisdiction over the parties, as determined by the facts in evidence, which bind the parties to a lawsuit, as opposed to subject-matter jurisdiction, which is jurisdiction over the law involved in the suit. Without personal jurisdiction over a party, a court's rulings or decrees cannot be enforced upon that party, except by comity; i.e., to the extent that the sovereign which has jurisdiction over the party allows the court to enforce them upon that party. A court that has personal jurisdiction has both the authority to rule on the law and facts of a suit and the power to enforce its decision upon a party to the suit. In some cases, territorial jurisdiction may also constrain a court's reach, such as preventing hearing of a case concerning events occurring on foreign territory between two citizens of the home jurisdiction. A similar principle is that of standing or locus standi, which is the ability of a party to demonstrate to the court sufficient connection to and harm from the law or action challenged to support that party's participation in the case.
A lawsuit is a proceeding by one or more parties against one or more parties in a civil court of law. The archaic term "suit in law" is found in only a small number of laws still in effect today. The term "lawsuit" is used with respect to a civil action brought by a plaintiff who requests a legal remedy or equitable remedy from a court. The defendant is required to respond to the plaintiff's complaint or else risk default judgment. If the plaintiff is successful, judgment is entered in favor of the defendant. A variety of court orders may be issued in connection with or as part of the judgment to enforce a right, award damages or restitution, or impose a temporary or permanent injunction to prevent an act or compel an act. A declaratory judgment may be issued to prevent future legal disputes.
In law, a settlement is a resolution between disputing parties about a legal case, reached either before or after court action begins. A collective settlement is a settlement of multiple similar legal cases. The term also has other meanings in the context of law. Structured settlements provide for future periodic payments, instead of a one time cash payment.
Res judicata (RJ) or res iudicata, also known as claim preclusion, is the Latin term for matter decided and refers to either of two concepts in both civil law and common law legal systems: a case in which there has been a final judgment and that is no longer subject to appeal; and the legal doctrine meant to bar relitigation of a claim between the same parties.
Prejudice is a legal term with different meanings, which depend on whether it is used in criminal, civil, or common law. In legal context, "prejudice" differs from the more common use of the word and so the term has specific technical meanings.
A declaratory judgment, also called a declaration, is the legal determination of a court that resolves legal uncertainty for the litigants. It is a form of legally binding preventive by which a party involved in an actual or possible legal matter can ask a court to conclusively rule on and affirm the rights, duties, or obligations of one or more parties in a civil dispute. The declaratory judgment is generally considered a statutory remedy and not an equitable remedy in the United States, and is thus not subject to equitable requirements, though there are analogies that can be found in the remedies granted by courts of equity. A declaratory judgment does not by itself order any action by a party, or imply damages or an injunction, although it may be accompanied by one or more other remedies.
Tenofovir disoproxil, sold under the trade name Viread among others, is a medication used to treat chronic hepatitis B and to prevent and treat HIV/AIDS. It is generally recommended for use with other antiretrovirals. It may be used for prevention of HIV/AIDS among those at high risk before exposure, and after a needlestick injury or other potential exposure. It is sold both by itself and together in combinations such as emtricitabine/tenofovir, efavirenz/emtricitabine/tenofovir, and elvitegravir/cobicistat/emtricitabine/tenofovir. It does not cure HIV/AIDS or hepatitis B. It is available by mouth as a tablet or powder.
In the law of the United States, diversity jurisdiction is a form of subject-matter jurisdiction that gives U.S. federal courts the power to hear lawsuits that do not involve a federal question. For a U.S. federal court to have diversity jurisdiction over a lawsuit, two conditions must be met. First, there must be "diversity of citizenship" between the parties, meaning the plaintiffs must be citizens of different U.S. states than the defendants. Second, the lawsuit's "amount in controversy" must be more than $75,000. If a lawsuit does not meet these two conditions, U.S. federal courts will normally lack the power to hear it unless it involves a federal question, and the lawsuit would need to be heard in state court instead.
In a court of law, a party's claim is a counterclaim if one party asserts claims in response to the claims of another. In other words, if a plaintiff initiates a lawsuit and a defendant responds to the lawsuit with claims of their own against the plaintiff, the defendant’s claims are “counterclaims.”
Amount in controversy is a term used in civil procedure to denote the amount at stake in a lawsuit, in particular in connection with a requirement that persons seeking to bring a lawsuit in a particular court must be suing for a certain minimum amount before that court may hear the case.
The Supreme Court of the United States has interpreted the Case or Controversy Clause of Article III of the United States Constitution as embodying two distinct limitations on exercise of judicial review: a bar on the issuance of advisory opinions, and a requirement that parties must have standing.
A shareholder derivative suit is a lawsuit brought by a shareholder on behalf of a corporation against a third party. Often, the third party is an insider of the corporation, such as an executive officer or director. Shareholder derivative suits are unique because under traditional corporate law, management is responsible for bringing and defending the corporation against suit. Shareholder derivative suits permit a shareholder to initiate a suit when management has failed to do so. To enable a diversity of management approaches to risks and reinforce the most common forms of corporate rules with a high degree of permissible management power, many jurisdictions have implemented minimum thresholds and grounds to such suits.
The Tucker Act is a federal statute of the United States by which the United States government has waived its sovereign immunity with respect to certain lawsuits.
The judicial system of Egypt is an independent branch of the Egyptian government which includes both secular and religious courts.
Emtricitabine/tenofovir, sold under the brand name Truvada among others, is a fixed-dose combination antiretroviral medication used to treat and prevent HIV/AIDS. It contains the antiretroviral medications emtricitabine and tenofovir disoproxil. For treatment, it must be used in combination with other antiretroviral medications. For prevention before exposure, in those who are at high risk, it is recommended along with safer sex practices. It does not cure HIV/AIDS. Emtricitabine/tenofovir is taken by mouth.
In law, intervention is a procedure to allow a nonparty, called intervenor to join ongoing litigation, either as a matter of right or at the discretion of the court, without the permission of the original litigants. The basic rationale for intervention is that a judgment in a particular case may affect the rights of nonparties, who ideally should have the right to be heard.
Funding Evil: How Terrorism is Financed and How to Stop It is a book written by counterterrorism researcher Dr. Rachel Ehrenfeld, director of the American Center for Democracy and the Economic Warfare Institute. It was published by Bonus Books of Los Angeles, California in August 2003.
Ashwander v. Tennessee Valley Authority, 297 U.S. 288 (1936), was a United States Supreme Court case that provided the first elaboration of the doctrine of "Constitutional avoidance".
In law, an appearance occurs when a party to a lawsuit physically appears in court, or to a formal act through which a defendant submits to the jurisdiction of the court in which the lawsuit is pending.
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