Also known as: successor in interest · successors-in-interest · successor-in-interest · successors · assignees in interest
Written by attorneys · grounded in primary & secondary sources — see below
A person or entity that succeeds to the rights, obligations, or property interests of another by operation of law, assignment, or inheritance.
Sabrina Shah inherited shares in a closely held corporation from her late uncle. The board remained deadlocked for two annual meetings over director elections. Sabrina, as successor in interest, petitioned for dissolution because the voting impasse prevented election of new directors and threatened ongoing harm to the business.
Solomon Silver purchased wetlands property after the state had already imposed development restrictions. When he sought compensation for a regulatory taking, the court held that Solomon, as successor in interest, lacked standing because the alleged taking occurred before his acquisition.
Select any source to read its text and confirm it supports the definition.
Sydney Santos was named a potential beneficiary in a Delaware trust. After the settlor's death, a Florida court attempted to bind nonresident successors in interest through constructive service. The Supreme Court ruled that such successors could not be subjected to personal jurisdiction without proper contacts.
Simon Stern, successor in interest to a shareholder who had lost a prior securities suit, attempted to reopen the judgment years later. The court rejected the effort, holding that successors in interest are bound by the finality of the earlier adjudication to the same extent as their predecessor.
Stella Shapiro acquired shares in a foreign bank after the alleged misstatements occurred abroad. As successor in interest, she sought to assert claims under U.S. securities law. The court dismissed the action because the conduct and effects occurred outside the United States.
Sebastian Santos purchased assets from a company that had engaged in price-fixing. As successor in interest, he faced claims for the predecessor's violations. The court held that liability could attach only if the transfer included an assumption of the underlying obligations.
A deposition from a prior action may be used in a later suit involving the same subject matter against the same parties or their successors in interest. The successor stands in the shoes of the predecessor and is bound to the same extent as if the deposition had been taken in the current case.
A successor in ownership of mortgaged real estate is personally liable for waste even if the successor did not assume the underlying debt. The duty to avoid waste and perform reasonable maintenance runs with the land and binds nonassuming grantees.
When property held in a purpose trust exceeds the amount needed for the intended use, the excess must be distributed to the settlor if living, or otherwise to the settlor's successors in interest. This rule prevents the property from remaining tied up after the purpose is fulfilled or abandoned.
A successor in interest to an estate or organization does not acquire holder-in-due-course rights when taking an instrument by legal process, in a bulk transaction outside the ordinary course, or through a creditor's sale. The successor steps into the shoes of the transferor but receives only the rights the transferor actually possessed.
…Trust Co. (to whom the $400,000 had been paid shortly after Mrs. Donner's death), certain individuals who were potential successors in interest to complainants Denckla and Stewart, and most of the named appointees in Mrs. Donner's 1949 appointment. A copy of the pleadings and a "Notice to Appear and Defend" were sent to each of…