Define: Third Party Lawsuit

A third-party lawsuit, also known as a third-party claim or third-party complaint, is a legal action brought by a defendant in a lawsuit against a party who is not initially involved in the case but who is believed to be responsible, in whole or in part, for the plaintiff’s damages or injuries. In such cases, the defendant asserts that the third party shares liability or should be held accountable for the plaintiff’s claims. Third-party lawsuits are common in situations involving contractual indemnification, product liability, insurance coverage disputes, or joint tortfeasor claims. They allow defendants to shift or share responsibility for the plaintiff’s damages with other parties who may have contributed to the harm. Third-party lawsuits are subject to the rules and procedures governing civil litigation, including the requirement to serve notice on all parties involved and to comply with deadlines for filing pleadings and conducting discovery.

The third party in a suit (most specifically a workers’ compensation case) is someone other than the employer who may be to blame for the injury. An example of a third-party lawsuit in workplace injury would be a products liability suit against the manufacturer of a defective product. In this case, the defendant or plaintiff may decide to file a suit against the third party.

Unlike workers’ compensation laws which generally bar the injured party from suing their employer for loss, there is no limitation on the worker’s rights to sue other at-fault persons or entities. This is known at a third-party liability suit. If a third party is responsible for the worker’s injuries the worker may be able to recover compensation for past and future medical expenses, past and future lost wages, past and future pain and suffering, past and future disability, and past and future disfigurement.

This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.

This glossary post was last updated: 29th March, 2024.