Legal Definitions - use plaintiff

A use plaintiff is the actual party who stands to benefit from a lawsuit, even though the legal action is formally brought in another person's or entity's name. This concept often arises from historical legal procedures or specific agreements where the party with the direct legal right to sue (the nominal plaintiff) is distinct from the party who will ultimately receive the judgment or settlement (the use plaintiff).

The lawsuit's title typically reflects this arrangement, often appearing as "Nominal Plaintiff for the Use of Use Plaintiff v. Defendant."

• Example 1: Insurance Subrogation

  Imagine a homeowner's roof is severely damaged by a negligent contractor. The homeowner's insurance company pays for the full cost of repairs, as per the insurance policy. The insurance company then wants to recover the money it paid out from the negligent contractor. In some jurisdictions, the lawsuit against the contractor might be filed as "Homeowner's Name for the Use of [Insurance Company Name] v. Negligent Contractor."

  In this scenario, the homeowner is the nominal plaintiff whose name appears first, as they were the original party harmed. However, the insurance company is the use plaintiff because it is the party that has actually suffered the financial loss (by paying for repairs) and will receive any damages recovered from the negligent contractor.

• Example 2: Assignment of a Business Debt

  Consider a small manufacturing company, "Precision Parts Inc.," that is owed a significant amount of money by a customer for goods delivered. To improve its cash flow, Precision Parts Inc. sells this outstanding debt to a specialized debt collection agency, "Global Collections LLC," for a discounted price. Global Collections LLC now legally owns the right to collect the debt. If the customer refuses to pay, Global Collections LLC needs to sue.

  Depending on the specific terms of the assignment and local legal rules, the lawsuit might be filed as "Precision Parts Inc. for the Use of Global Collections LLC v. Customer." Here, Precision Parts Inc. is the nominal plaintiff because it was the original creditor. However, Global Collections LLC is the use plaintiff because it is the true party in interest that will benefit from winning the lawsuit and collecting the debt.