Also known as:third-party claim · third party claim · third party claims
Written by attorneys · grounded in primary & secondary sources — see below
A claim asserted by a defending party against a nonparty who may be liable to the defendant for all or part of the plaintiff's claim.
Sources & Authorities
How it applies
Common Examples
6
Bank Joins Indemnity and Conversion Claims
Talia Torres sued Twin Rivers Bank for conversion of her deposited funds. The bank answered and then filed a third-party complaint against Threshold Capital for indemnity on the conversion claim while also joining its own separate conversion claim against the same third-party defendant arising from the same funds transfer. The joinder allowed both claims to proceed together against the opposing third party.
Court Enters Partial Judgment on Impleader
Tracy Torres sued Trinity Pharmaceuticals for product liability damages exceeding $500,000. Trinity impleaded Tidal Energy as a third-party defendant for contribution. The court found no just reason for delay on the third-party claim alone and directed entry of final judgment dismissing the impleader while the main action continued.
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Statutes
Federal Rules
Uniform Acts
Casebooks
Hornbooks
Study Supplements
Consolidation Bars Relitigation of Third-Party Issue
Theo Thomas was acquitted in a criminal prosecution after a jury found he had not participated in a robbery. In a later civil suit brought by the robbery victim against Thomas and a third-party insurer, the court applied collateral estoppel to prevent relitigation of the participation issue that had been resolved in the consolidated proceedings involving the third-party claim.
Ashe v. Swenson397 U.S. 436, 444 (1970)
Separate Trial Ordered for Third-Party Claim
Tiffany Torres sued a theater operator for antitrust damages and demanded a jury trial. The operator impleaded a third-party supplier on an indemnity theory. The court ordered a separate nonjury trial on the third-party claim to avoid prejudice to the jury's consideration of the main antitrust issues.
Beacon Theatres, Inc. v. Westover359 U.S. 500 (1959)
Accountant Faces Third-Party Negligence Claim
Talia Tang, an investor, sued a corporation for securities fraud after relying on audited financial statements. The corporation impleaded the auditing firm for contribution, asserting the firm negligently misrepresented the company's finances to third-party investors like Tang.
Bily v. Arthur Young & Co.834 P.2d 745 (Cal. 1992)
Stolen Artwork Generates Third-Party Claim
Theresa Tucker sued a gallery for replevin of a painting she claimed had been stolen from her family. The gallery impleaded a prior possessor as a third-party defendant seeking indemnity in case the court awarded the painting to Tucker.
O’Keeffe v. Snyder416 A.2d 862
Common questions
Frequently Asked
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When must a defendant obtain leave of court to file a third-party complaint?+
A defendant may file a third-party complaint as of right only within fourteen days after serving its original answer. After that period, the defendant must obtain the court's leave on motion before impleading a nonparty.
Supporting sources
Can a plaintiff assert a claim directly against a nondiverse third-party defendant impleaded under Rule 14?+
No. In a diversity-only action, supplemental jurisdiction does not extend to claims by the original plaintiff against a person made a party under the impleader rule when exercising jurisdiction would destroy complete diversity.
Supporting sources
Does Rule 18(a) permit a defendant to join an independent claim with its third-party claim against the same opposing party?+
Yes. A party asserting a third-party claim may join as many additional claims as it has against the opposing party, whether independent or alternative.
Supporting sources
When may a court direct entry of final judgment on a third-party claim before all claims are resolved?+
A court may direct entry of final judgment as to one or more but fewer than all claims, including a third-party claim, only if it expressly determines there is no just reason for delay.
Supporting sources
397 U.S. 436 (1970)Criminal Procedure
…this compulsion to third-party defendants. Rule 18 permits very broad joinder of claims, counterclaims, cross-claims, and third-party claims. Rules 19, 20, and 24 provide for joinder of parties and intervention by parties having claims related to the subject matter of the action. Rule 23 permits the consolidation of separate…