Legal Definitions - third-party practice

Third-party practice, also commonly referred to as impleader, is a legal procedure that allows a defendant in an existing lawsuit to bring a new party into the case. This occurs when the defendant believes that this new party (known as the "third-party defendant") is responsible for all or part of the plaintiff's claim against the original defendant, or owes the defendant indemnity or contribution related to that claim.

The primary goal of third-party practice is to resolve all related claims stemming from the same set of facts in a single lawsuit. This promotes judicial efficiency, prevents the need for multiple separate lawsuits, and ensures that all potentially responsible parties are involved in the same proceeding.

• Example 1: Construction Defect

  A homeowner sues a general contractor for significant water damage in their new house, alleging faulty roof installation. The general contractor, while defending against the homeowner's claim, believes that the actual cause of the water damage was the negligent work of the roofing subcontractor they hired. The general contractor can use third-party practice to bring the roofing subcontractor into the lawsuit.

  This illustrates third-party practice because the general contractor (the original defendant) is introducing a new party (the roofing subcontractor) into the existing lawsuit. The general contractor argues that if they are found liable to the homeowner, the subcontractor should be held responsible for those damages due to their alleged negligence.

• Example 2: Product Liability in Retail

  A customer sues a large retail chain after a bicycle purchased from their store malfunctioned, causing an injury. The retail chain believes the malfunction was due to a manufacturing defect and not an issue with their assembly or sale process. The retail chain can initiate third-party practice to include the bicycle manufacturer in the lawsuit.

  Here, the retail chain (the defendant) is bringing in the manufacturer (the third-party defendant). The retail chain's claim is that if they are found liable to the customer, the manufacturer should indemnify them or contribute to the damages because the defect originated with the manufacturer.

• Example 3: Professional Negligence and Subcontracting

  A business owner sues an architectural firm for design flaws in a new building that led to significant structural problems. The architectural firm, in turn, claims that they outsourced a specialized structural analysis to an independent engineering consultant, and it was the consultant's flawed analysis that caused the design errors. The architectural firm can use third-party practice to bring the engineering consultant into the lawsuit.

  This demonstrates third-party practice as the architectural firm (the defendant) is adding the engineering consultant (the third-party defendant) to the case. The firm seeks to shift responsibility, arguing that if they are found liable to the business owner, the engineering consultant should be responsible for those damages due to their professional negligence.