Also known as: capacity to sue
Written by attorneys · grounded in primary & secondary sources — see below
A procedural attribute of a party that authorizes it to initiate or defend a lawsuit in its own name under the governing law. The attribute attaches to any natural person or entity recognized as a legal person by applicable statute or common law. It is distinct from standing or the merits of the underlying claim.
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Lakewood Manufacturing, an LLC with its principal place of business in the Eastern District of State X, filed a contract action against a supplier. The supplier moved to transfer venue, claiming the LLC could sue only where its members reside. The court denied the motion because Lakewood possesses capacity to sue in its own name and therefore resides only in the district of its principal place of business for venue purposes.
Lunar Dynamics, an LLC formed under State A law, contracted with a parts supplier for manufacturing equipment. When the parts proved defective, Lunar Dynamics filed suit in its own name seeking damages. The supplier moved to dismiss, arguing only the LLC's members could sue. The court denied the motion, holding that the LLC holds statutory capacity to sue and be sued in its own name.
Lighthouse Shipping, a limited partnership formed to finance and operate vessels, entered a royalty agreement with a charterer. When the charterer underpaid, Lighthouse Shipping sued in the partnership name for an accounting. The charterer moved to dismiss for lack of capacity. The court denied the motion because the limited partnership possesses statutory capacity to sue in the name of the partnership.
Lillian Locke filed a negligence action against her husband after a car accident. The husband demurred, asserting that a spouse lacks capacity to sue the other. The court overruled the demurrer, holding that the wife possesses legal capacity to sue in her own name under state law.
Loyal Insurance, a federally chartered entity, brought a collection action in federal court against a defaulting borrower. The borrower challenged jurisdiction, claiming the entity lacked capacity to sue in federal court. The court rejected the challenge, confirming that the entity's federal charter supplies capacity to sue in its own name.
Liam Larson, a union representative, filed suit on behalf of Textile Workers Union of America against an employer for breach of a collective bargaining agreement. The employer moved to dismiss, arguing the union lacked capacity to sue in its own name. The court denied the motion, holding that the union possesses capacity to enforce its agreements through litigation.
Capacity concerns whether a party may appear in court in its own name under governing law. Standing concerns whether that party has a sufficient interest in the dispute to obtain relief. A party may have capacity yet lack standing, or vice versa.
No. Loss of tax-exempt status affects only regulatory classification. The corporation retains its legal existence and capacity to sue and be sued in its corporate name under state corporation statutes.
…candidly admits that the action against Piper and Hartzell was filed in the United States because its laws regarding liability, capacity to sue, and damages are more favorable to her position than are those of Scotland. Scottish law does not recognize strict liability in tort. Moreover, it permits wrongful-death actions only when…
…of the United States. The appellants relied on Bank of the United States v. Deveaux , where this Court held that a mere general capacity to sue
…in federal courts, decades before the United States extended formal recognition. The Taiwan Relations Act of 1979 grants Taiwan capacity to sue
…White, filed special demurrers in which they demurred to the petition on the following grounds: (1) That the plaintiff has no legal capacity to sue
…defendants’ acts constituted a restraint of trade in violation of common law and statutory antitrust laws. I Plaintiff’s Capacity to Sue
Yes. A corporation may be sued under the name by which it holds itself out to the public. Courts treat the trade name as identifying the same legal entity and permit amendment if needed to reflect the formal name.
No. Capacity arises from the LLC's statutory status as a separate legal person. Performance through contractors and execution of the primary agreement in the LLC's name suffice to establish that the LLC is carrying on its affairs.
A limited partnership has capacity when the work falls within its stated purpose and the partnership used its resources. Ownership disputes with affiliates affect the merits, not the statutory capacity to sue in the partnership name.