Indispensable party
Encyclopedia
An indispensable party (also called a necessary party or necessary and indispensable party) is a party
in a lawsuit
whose participation is required for jurisdiction
or the purpose of rendering a judgment. In reality, a party may be "necessary" but not indispensable. For example, if s/he claims an interest in the litigation, that interest may be impeded if s/he is not joined. That doesn't transform him or her into an indispensable party unless her absence threatens some other party's interest. Often, an indispensable party is any party whose rights are directly affected by disposition of the case. Many jurisdiction
s have rules which provide for an indispensable party to be joined
(brought into the case as a party) at the discretion
of the judge
. In some cases, the inability to join such a party means that the case must be dismissed.
requirement. That is, while the parties currently involved in litigation have an actual case or controversy
, judges will not proceed without the indispensable party. This avoids potential double litigation and possibly inequitable outcomes. In determining whether a party is indispensable, courts generally look to three factors:
In patent law, for example, a patent
owner is an indispensable party to a patent infringement
suit brought by an exclusive license
e against an alleged infringer. The patent owner's rights would be directly affected by a finding of invalidity or unenforceability of the patent claim
s. At the same time, if the patent owner is not a party to the case, the alleged infringer could be sued separately by the patent owner, and could end up having to pay two judgments for the same act of infringement.
Where the missing party can not be brought into the case, the court must determine whether it is possible to proceed without joining that party. If it is not possible to proceed, the case will be dismissed.
In some jurisdictions, the failure to join an indispensable party does not hinder the case. For example, the state of Virginia
does not recognize the doctrine of indispensable parties; although a defendant may argue that the plaintiff has improperly failed to join a party that would conventionally be deemed indispensable, and may seek to have the court attempt to join the missing party, if it is not feasible to join the missing party then the case will simply go on without them.
Party (law)
A party is a person or group of persons that compose a single entity which can be identified as one for the purposes of the law. Parties include: plaintiff , defendant , petitioner , respondent , cross-complainant A party is a person or group of persons that compose a single entity which can be...
in a lawsuit
Lawsuit
A lawsuit or "suit in law" is a civil action brought in a court of law in which a plaintiff, a party who claims to have incurred loss as a result of a defendant's actions, demands a legal or equitable remedy. The defendant is required to respond to the plaintiff's complaint...
whose participation is required for jurisdiction
Jurisdiction
Jurisdiction is the practical authority granted to a formally constituted legal body or to a political leader to deal with and make pronouncements on legal matters and, by implication, to administer justice within a defined area of responsibility...
or the purpose of rendering a judgment. In reality, a party may be "necessary" but not indispensable. For example, if s/he claims an interest in the litigation, that interest may be impeded if s/he is not joined. That doesn't transform him or her into an indispensable party unless her absence threatens some other party's interest. Often, an indispensable party is any party whose rights are directly affected by disposition of the case. Many jurisdiction
Jurisdiction
Jurisdiction is the practical authority granted to a formally constituted legal body or to a political leader to deal with and make pronouncements on legal matters and, by implication, to administer justice within a defined area of responsibility...
s have rules which provide for an indispensable party to be joined
Joinder
Joinder is a legal term, which refers to the process of joining two or more legal issues together to be heard in one hearing or trial. It is done when the issues or parties involved overlap sufficiently to make the process more efficient or more fair...
(brought into the case as a party) at the discretion
Judicial discretion
Judicial discretion is the power of the judiciary to make some legal decisions according to their discretion. Under the doctrine of the separation of powers, the ability of judges to exercise discretion is an aspect of judicial independence...
of the judge
Judge
A judge is a person who presides over court proceedings, either alone or as part of a panel of judges. The powers, functions, method of appointment, discipline, and training of judges vary widely across different jurisdictions. The judge is supposed to conduct the trial impartially and in an open...
. In some cases, the inability to join such a party means that the case must be dismissed.
Identifying an indispensable party
The indispensable party is often a prudential standingStanding (law)
In law, standing or locus standi is the term for the ability of a party to demonstrate to the court sufficient connection to and harm from the law or action challenged to support that party's participation in the case...
requirement. That is, while the parties currently involved in litigation have an actual case or controversy
Case or controversy
The Case or Controversy Clause of Article III of the United States Constitution has been deemed to impose a requirement that United States federal courts are not permitted to hear cases that do not pose an actual controversy — that is, an actual dispute between adverse parties which is capable of...
, judges will not proceed without the indispensable party. This avoids potential double litigation and possibly inequitable outcomes. In determining whether a party is indispensable, courts generally look to three factors:
- Will the missing party's interests be harmed in some direct way by the outcome of the case?
- Does the missing party have an interest which would cause another party to the case to be subjected to multiple obligations?
- Can the court provide complete relief to the plaintiff without the presence of the missing party?
In patent law, for example, a patent
Patent
A patent is a form of intellectual property. It consists of a set of exclusive rights granted by a sovereign state to an inventor or their assignee for a limited period of time in exchange for the public disclosure of an invention....
owner is an indispensable party to a patent infringement
Patent infringement
Patent infringement is the commission of a prohibited act with respect to a patented invention without permission from the patent holder. Permission may typically be granted in the form of a license. The definition of patent infringement may vary by jurisdiction, but it typically includes using or...
suit brought by an exclusive license
License
The verb license or grant licence means to give permission. The noun license or licence refers to that permission as well as to the document recording that permission.A license may be granted by a party to another party as an element of an agreement...
e against an alleged infringer. The patent owner's rights would be directly affected by a finding of invalidity or unenforceability of the patent claim
Claim (patent)
Patent claims are the part of a patent or patent application that defines the scope of protection granted by the patent. The claims define, in technical terms, the extent of the protection conferred by a patent, or the protection sought in a patent application...
s. At the same time, if the patent owner is not a party to the case, the alleged infringer could be sued separately by the patent owner, and could end up having to pay two judgments for the same act of infringement.
Determining the feasibility of joining an indispensable party
Once it has been determined that a missing party is indispensable, the court must determine whether it is feasible to join that party to the case. In making this determination, the court will use the same analysis that it uses to determine whether it has jurisdiction over any party. First, it must determine whether it can exercise personal jurisdiction over the party. Second, it must determine whether the exercise of personal jurisdiction will affect its subject matter jurisdiction. In diversity cases, which brought in federal court on the basis of all plaintiffs coming from different states as all defendants, joinder will not be deemed feasible if it destroys diversity.Where the missing party can not be brought into the case, the court must determine whether it is possible to proceed without joining that party. If it is not possible to proceed, the case will be dismissed.
In some jurisdictions, the failure to join an indispensable party does not hinder the case. For example, the state of Virginia
Virginia
The Commonwealth of Virginia , is a U.S. state on the Atlantic Coast of the Southern United States. Virginia is nicknamed the "Old Dominion" and sometimes the "Mother of Presidents" after the eight U.S. presidents born there...
does not recognize the doctrine of indispensable parties; although a defendant may argue that the plaintiff has improperly failed to join a party that would conventionally be deemed indispensable, and may seek to have the court attempt to join the missing party, if it is not feasible to join the missing party then the case will simply go on without them.