Real Party in Interest

Definition

The person or entity that actually stands to gain or lose from the outcome of a lawsuit, regardless of who is formally named as a party. In sovereign immunity cases, if the state treasury would actually bear the cost of an adverse judgment, the state may be considered the real party in interest even if only the agency is named.

Examples

• •The plaintiffs argued that even if NJ Transit lacks sovereign immunity, the real-party-in-interest doctrine could still protect the state treasury from direct liability in specific cases.

Related Terms