Legal Definitions - faux action

A faux action refers to a legal proceeding that, despite appearing to be a legitimate lawsuit, lacks a genuine legal basis or a true dispute between the parties involved. Such an action is often initiated for an improper purpose, rather than to resolve an actual legal controversy.

• Example 1: Collusive Lawsuit for Asset Protection

  A business owner, facing significant debts, secretly agrees with a friend to file a "lawsuit" against themselves. The friend claims the business owner owes them a large sum of money based on a fabricated contract. The business owner then "agrees" to a court judgment in favor of the friend.

  This is a faux action because there is no genuine dispute between the business owner and their friend. The lawsuit is a pretense designed to create a false debt and judgment, allowing the business owner to claim their assets are owed to the friend, thereby shielding them from legitimate creditors. The court is misled into issuing an order based on a fabricated scenario.

• Example 2: Sham Litigation for Harassment

  A disgruntled former employee files a lawsuit against their previous employer, alleging various baseless claims of discrimination and wrongful termination. The employee knows these claims have no factual or legal support but files the suit primarily to cause the employer significant legal expenses, damage their reputation, and disrupt their business operations.

  This constitutes a faux action because the lawsuit is not brought with a genuine intent to seek justice or resolve a legitimate legal grievance. Instead, its primary purpose is harassment and disruption, using the legal system as a tool for improper ends rather than for its intended function of resolving real disputes.

• Example 3: Fabricated Dispute for Regulatory Evasion

  Two companies, both owned by the same parent corporation, initiate a "lawsuit" against each other over a supposed breach of contract. The real goal is to obtain a court order that allows them to transfer certain intellectual property or assets between them in a way that bypasses specific regulatory approvals or tax implications that would apply to a direct transfer.

  This is a faux action because the "dispute" is manufactured. The parties are not truly adverse; they are cooperating to achieve a specific outcome through the court system that they could not or would not pursue legitimately. The legal action serves as a facade to circumvent regulations or gain an unfair advantage, rather than to resolve an actual conflict between independent parties.