Legal Definitions - neither party

The legal term neither party refers to a situation in a lawsuit where both sides—the person or entity who initiated the case (the plaintiff) and the person or entity being sued (the defendant)—mutually agree to stop actively pursuing or defending the legal action. This joint agreement is formally communicated to the court, and its practical effect is the dismissal of the lawsuit, meaning the case ends without a judgment or a formal settlement reached through court proceedings. It signifies that neither side wishes to continue with the litigation.

• Example 1: Neighbors' Property Dispute
  Two neighbors, Mr. Henderson and Ms. Chen, were involved in a lawsuit over a disputed fence line. After several months of legal proceedings, they both realized that the emotional stress and mounting legal fees were far exceeding the value of the small strip of land in question. They decided that continuing the fight was not in either of their best interests. Consequently, their respective attorneys jointly informed the court that neither party wished to continue with the litigation, leading to the dismissal of the lawsuit.

• Example 2: Business Contract Disagreement
  Innovate Solutions Inc. had sued Apex Manufacturing Co. for an alleged breach of a supply contract. Apex Manufacturing Co. then filed a counterclaim. During the discovery phase, both companies uncovered information that suggested their respective cases had unexpected weaknesses, and the cost of further litigation, including potential appeals, would be substantial. Rather than risk an unfavorable outcome or incur further significant expenses, the legal teams for both Innovate Solutions Inc. and Apex Manufacturing Co. agreed to notify the court that neither party would continue to prosecute or defend the claims, resulting in the dismissal of both the original lawsuit and the counterclaim.

• Example 3: Family Estate Litigation
  Siblings Mark and Lisa were engaged in a contentious lawsuit over the distribution of their deceased parent's estate, disagreeing on the interpretation of a clause in the will. The prolonged legal battle caused significant strain on their family relationships and depleted a substantial portion of the estate's assets in legal fees. After a heartfelt discussion facilitated by a family friend, they decided that preserving their family bond was more important than continuing the legal fight. They jointly instructed their lawyers to file a notice with the court stating that neither party wished to proceed with the litigation, which led to the dismissal of the estate dispute.