In legal terms, a real party in interest is someone who has a legal right, privilege, or interest in a lawsuit or other legal matter. It is not just someone who has been a casual observer of the events leading to the lawsuit or is randomly involved. The real party in interest typically is the person who is either seeking to protect or to enforce a right, title, or interest in the controversy, and is often referred to as the “beneficial interest holder” as they have something to gain or protect from the litigation.
Oftentimes, in order for a person to have “standing” or to be a real party in interest before the court, that person must have a legal right or interest that is directly at risk. This person typically must have an interest in the outcome of the litigation such as a right to payment of money or a right to possession of property. Even though in a general sense, such matters may appear to impact many people, the court’s focus is on whether there is a specific benefit or detriment that will accrue to a particular person.
Key Examples of Real Parties in Interest
In business, real parties in interest may include a company, and its owners, shareholders, and creditors, any contractual beneficiaries, anyone with a viable legal claim associated with the action, and any necessary parties such as lienholders or business partners. Other parties may ultimately be affected depending on the rulings of the court, but may not be considered necessary or real parties in interest.
To give a current example of a real party in interest, let’s say a group of shareholders is suing a company over a breach of contract. The company, its owners, and the shareholders themselves are all considered real parties in interest in this particular lawsuit. Whereas, random people who have no stake in the lawsuit cannot rightfully claim to be a real party in interest.
Conclusion
In summary, it is important to remember that a real party in interest must have a legal interest in a lawsuit or legal matter in order to be considered as such. In business, real parties in interest can include companies, their employees, shareholders, creditors, and contractual beneficiaries. It is vital to have a clear understanding of this concept to make sure that legal matters are handled properly with the right parties.