Legal Definitions - usee

The term usee refers to the individual or entity who is the actual beneficiary of a lawsuit, even though another party, known as the "use plaintiff" or nominal plaintiff, is formally listed as bringing the legal action. In essence, the usee is the real party in interest—the one for whom the lawsuit is ultimately pursued and who stands to gain from a favorable outcome, even if their name does not appear as the primary plaintiff on the court documents. The use plaintiff acts on behalf of the usee to recover damages or enforce rights that, in substance, belong to or will benefit the usee.

Here are some examples to illustrate this concept:

• Example 1: Insurance Subrogation

  Scenario: A homeowner, Ms. Chen, experiences significant damage to her roof due to a faulty installation by a contractor. Her insurance company pays for the full cost of repairs, as per her policy agreement.

  Legal Action: The insurance company then decides to recover the money it paid out by suing the negligent contractor. In some legal systems, the insurance company might bring this lawsuit *in Ms. Chen's name* (as the "use plaintiff"), even though the insurance company itself is the one seeking reimbursement.

  Explanation: In this situation, Ms. Chen is the nominal plaintiff, but the insurance company is the "usee." The lawsuit is being pursued for the benefit of the insurance company, which will receive any recovered funds to offset the payment it made to Ms. Chen. Ms. Chen herself has already been compensated for her damages and will not directly benefit from the lawsuit's outcome.

• Example 2: Assignment of a Debt

  Scenario: A small graphic design firm, "Creative Canvas," is owed $7,500 by a client who failed to pay for a completed project. Creative Canvas, needing to improve its cash flow, sells this outstanding debt to a debt collection agency, "Asset Recovery Services," for a discounted price of $5,000.

  Legal Action: Asset Recovery Services then attempts to collect the full $7,500 from the client. If the client refuses to pay, Asset Recovery Services might file a lawsuit. In certain jurisdictions, the lawsuit might still be filed *in the name of Creative Canvas* (as the "use plaintiff"), even though Creative Canvas no longer owns the debt.

  Explanation: Here, Creative Canvas is the nominal plaintiff, but "Asset Recovery Services" is the "usee." The lawsuit is being brought for the benefit of Asset Recovery Services, which now owns the right to collect the debt and will receive any funds recovered from the client. Creative Canvas has already received its payment from Asset Recovery Services and will not benefit further from the litigation.

• Example 3: Guardianship for an Incapacitated Adult

  Scenario: Mr. Davies, an elderly man, suffers a severe stroke that leaves him mentally incapacitated. His daughter, Maria, is appointed as his legal guardian by the court.

  Legal Action: Maria, acting as Mr. Davies's guardian, discovers that a financial advisor had previously mismanaged Mr. Davies's investments, causing significant losses. Maria files a lawsuit against the financial advisor to recover the lost funds on her father's behalf. The lawsuit is formally brought by "Maria Davies, as Guardian for Arthur Davies."

  Explanation: In this case, Maria Davies is the "use plaintiff" because she is formally initiating the legal action. However, Mr. Arthur Davies himself is the "usee." The lawsuit is entirely for his benefit; any damages awarded will be used to restore his financial well-being and support his care, not for the direct benefit of Maria (beyond her role as guardian managing his assets).