Lawsuit

From Wikinvestor

In law a lawsuit is a civil action brought before a court in which the party commencing the action, the plaintiff, seeks a legal or equitable remedy. One or more defendants are required to respond to the plaintiff complaint. If the plaintiff is successful, judgment will be given in the plaintiff's favor, and a range of court orders may be issued to enforce a right, award damages, or impose an injunction to prevent an act or compel an act. A declaratory judgment may be issued to prevent future legal disputes.

A lawsuit may involve dispute resolution of private law issues between individuals, business entities or non-profit organizations. A lawsuit may also enable the government to be treated as if it were a private party in a civil case, as plaintiff or defendant regarding an injury, or may provide the government with a civil cause of action to enforce certain laws.

The conduct of a lawsuit is called litigation.

History of the term "lawsuit"

During the 18th and 19th centuries, it was common for lawyers to speak of bringing an "action" at law and a "suit" in equity. The fusion of common law and equity in the Judicature Acts of 1873 and 1875 led to the collapse of that distinction, so it became possible to speak of a "lawsuit".

In England and Wales the term "claim" is far more common; the person initiating proceedings is called the claimant.

American terminology is slightly different, in that the term "claim" refers only to a particular count (or cause of action) in a lawsuit. Americans also use "claim" to describe a demand filed with an insurer or administrative agency. If the claim is denied, then the claimant (or policyholder or applicant) files a lawsuit with the courts and becomes a plaintiff.

In medieval times, both "action" and "suit" had the approximate meaning of some kind of legal proceeding, but an action terminated when a judgment was rendered, while a suit also included the execution of the judgment.