third-party claims
Definition
A third-party claim happens when someone who is being sued turns around and brings another person or company into that same lawsuit, arguing that the new party is actually responsible for some or all of the harm. Think of it as the defendant saying 'don't just look at me, look at them too.' This keeps everything in one lawsuit instead of spreading related disputes across multiple court cases.
Example
A customer sues your bakery after getting sick, and you file a third-party claim against the supplier who sold you the contaminated flour, arguing they share the blame.
Watch Out
Your business insurance policy may cover third-party claims made against you, but it usually will not pay for third-party claims that you initiate, so read your policy carefully before assuming you are covered.
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This definition is for informational purposes only and does not constitute legal advice. Please consult with a licensed attorney for legal guidance.