Legal Definitions - identity of interests

Identity of Interests is a legal concept in civil lawsuits that describes a relationship between two separate parties so close that a lawsuit filed against one party is considered to provide effective notice of the legal claim to the other party as well. This principle is often used when a plaintiff wants to add a new defendant to an existing lawsuit, particularly if the usual time limit (known as the statute of limitations) for suing that new defendant has already passed. If an "identity of interests" is found, a court may allow the new defendant to be included because they were implicitly aware of the claim through their closely related counterpart and would not be unfairly surprised or disadvantaged by being brought into the suit later.

Here are some examples illustrating this concept:

• Parent Company and Subsidiary: Imagine a customer sues "Tech Innovations Inc." for a defective software product. Later, the customer discovers that the software was actually developed and marketed by "Global Solutions LLC," a wholly-owned subsidiary of Tech Innovations Inc., which shares key executives, branding, and operational control. The deadline for suing Global Solutions LLC directly has passed.

  In this scenario, a court might find an "identity of interests" between Tech Innovations Inc. and Global Solutions LLC. Because they are so closely intertwined in ownership, management, and operations, suing the parent company (Tech Innovations Inc.) would have effectively put the subsidiary (Global Solutions LLC) on notice about the claim regarding their product. This allows the customer to add Global Solutions LLC to the lawsuit, even after the initial deadline, because Global Solutions LLC was not truly unaware of the potential legal action.

• Individual Acting in a Professional Capacity: A patient sues "Dr. Emily White" for alleged negligence during a surgical procedure. During the legal process, it becomes clear that the alleged negligence occurred while Dr. White was acting as the chief surgeon for "Metropolitan Hospital," and the hospital itself might bear some responsibility for its protocols or staff. The patient wants to add Metropolitan Hospital as a defendant, but the statute of limitations for suing the hospital directly has expired.

  A court could determine an "identity of interests" between Dr. White and Metropolitan Hospital. As the chief surgeon, Dr. White's actions were directly tied to her role within the hospital, and the hospital would likely have been aware of the lawsuit against its key medical professional concerning events that occurred under its auspices. Therefore, suing Dr. White provided sufficient notice to Metropolitan Hospital, allowing the hospital to be added to the lawsuit.

• Closely Held Business with Shared Leadership: A vendor sues "Creative Designs Co., LLC" for unpaid invoices related to a large marketing campaign. The vendor later learns that the individual who managed the project and approved all expenses, Ms. Sarah Lee, also owns a separate entity, "Lee Marketing Group," which directly benefited from the campaign and was deeply involved in its execution. The vendor wishes to add Ms. Lee and Lee Marketing Group as defendants, but the deadline has passed for suing them individually.

  An "identity of interests" might exist between Creative Designs Co., LLC, Ms. Sarah Lee, and Lee Marketing Group. Given Ms. Lee's central role in both entities and the project, and the shared financial benefit, suing Creative Designs Co., LLC would have provided effective notice to Ms. Lee and her other company regarding the dispute over the invoices. This allows the vendor to include them in the lawsuit, ensuring all relevant parties can address the claim.