Impleader is a legal term used in civil litigation that refers to the addition of a third party to a lawsuit. This means that when two parties are already involved in a lawsuit, a third party can be added to the proceedings to increase the potential outcome of the case. The third party, known as an impleaded party, may end up owing money or having to pay money to the plaintiff or the defendant, depending on the ruling of the court.
Impleader is a useful tool for businesses, as it can help to lessen the financial burden of a lawsuit by allowing additional parties to participate in the proceedings. For example, if a company is sued on the grounds of negligence and the third party impleads another corporation that was involved in the incident, that third-party entity might be legally responsible for paying any damages. Additionally, if the impleaded party is liable for some of the alleged damages, the original defendants’ liability can be reduced. This can help protect a business from financial ruin due to lawsuits.
Businesses should be familiar with the concept of impleader and the different ways in which they can use the tool. Because the addition of a third party to a lawsuit can significantly affect the outcome of a case, businesses should be sure to consult with a qualified attorney to determine if impleader is appropriate in a given situation. Doing so may give businesses the best chance of being successful in their litigation endeavors.