Pursuant to a case involving bid-rigging from some of the world’s largest banks in 2013, a 2019 dismissal affirmed a longstanding precedent in the United States: Dead people can’t sue. Generally speaking, this applies to defunct companies as well. In order to initiate a lawsuit, the person or entity must exist.
An LFJ Conversation with Michael Kelley, Partner, Parker Poe
Pursuant to a case involving bid-rigging from some of the world’s largest banks in 2013, a 2019 dismissal affirmed a longstanding precedent in the United States: Dead people can’t sue. Generally speaking, this applies to defunct companies as well. In order to initiate a lawsuit, the person or entity must exist.
Chief Executive details that the Second Circuit Court of Appeals in New York reversed that decision. It reasoned last March that it doesn’t matter if the plaintiffs died before they filed suit—so long as someone still living had a viable stake in the case. This set off the US Chamber of Commerce, among others, which warned courts that this decision could lead to third-party legal funders anonymously launching cases simply for profit.
The Chamber of Commerce went so far as to ask SCOTUS to overturn the reversal. It claims that the Constitution limits federal court involvement to cases that revolve around “real controversy” that have a tangible impact on “real persons.” It went on to suggest that the ruling would empower class-action lawyers, funders, or hedge funds to act unscrupulously.
While that’s certainly possible—all industries have bad actors—is that really a reason to limit which cases can be pursued?
