/kuh-PAS-i-tee too soo or bee sued/·procedural term
Also known as:capacity to sue · capacity to be sued · legal capacity · standing to sue
Written by attorneys · grounded in primary & secondary sources — see below
A procedural requirement that determines whether a person or entity may initiate or defend a lawsuit in court. The requirement turns on the party's legal status under applicable law, such as domicile for individuals or state of organization for corporations. It is distinct from standing or real-party-in-interest rules and must be pleaded when placed in issue.
Sources & Authorities
How it applies
Common Examples
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Minor Lacks Contractual Capacity
Sixteen-year-old Cecilia Cabrera signed a promissory note with Cedar Creek Farms for farm equipment. When Cedar Creek Farms sued to enforce the note, Cecilia moved to dismiss on the ground that she lacked capacity to incur contractual duties. The court held that because she could not be bound by contract, she could not be sued on the instrument.
Trade Group Capacity To Sue
Cypress Technologies belonged to an industry trade group. The group filed suit alleging a new regulatory fee was unlawful. The court permitted the suit after confirming the group itself possessed capacity to sue and be sued under the law of its state of organization.
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Cases
Statutes
Federal Rules
Uniform Acts
Common Law
Restatements
Course Outlines
Study Supplements
Crystal Dynamics, an unincorporated entity, was sued in federal court. Because it possessed capacity to sue and be sued under state law, the court treated it as residing in every district where it was subject to personal jurisdiction for venue purposes.
Minor Lacks Litigation Capacity
Catherine Carter's sixteen-year-old son invited Cynthia Cortez to occupy a family cottage in exchange for maintenance work. When Catherine returned and sought to remove Cynthia, the court ruled that the son lacked capacity to sue or be sued in his own name and therefore could not create or enforce any tenancy.
LLC Capacity to Sue
Crestview Holdings, a limited liability company, brought an action against a former manager for misappropriation of funds. The court recognized that the LLC possessed capacity to sue in its own name and could pursue all remedies necessary to protect its interests.
Limited Partnership Capacity
Cameron Cruz formed a limited partnership that contracted to purchase commercial property. When the seller refused to close, the partnership sued in its own name. The court held that the limited partnership had capacity to sue and be sued in the name of the partnership.
Common questions
Frequently Asked
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How is capacity to sue or be sued determined for an individual who is not acting in a representative capacity?+
Capacity is determined by the law of the individual's domicile under Federal Rule of Civil Procedure 17(b)(1).
Does a minor child have standing to seek adjudication of parentage?+
Modern parentage statutes grant the child independent standing to seek adjudication of parentage, even though the child must act through a representative such as a guardian ad litem because of lack of capacity to litigate in the child's own name.
When does a minor lack capacity to participate in litigation over property interests?+
A minor lacks capacity to sue or be sued in his or her own name. Any action concerning property interests must be brought or defended through a representative such as a guardian ad litem.
What must an organization show to establish its own capacity to sue?+
The organization must show it possesses capacity to sue and be sued under the law of the state in which it was organized or under federal law if applicable.
410 U.S. 113 (1973)Constitutional Law
…District Court for the Northern District of Texas, to which the action was referred, held that the Does and Hallford had no standing to sue, but that Roe did have standing, and that the Texas abortion laws were unconstitutional. The court declared the laws void but refused to issue an injunction against their enforcement.…