Written by attorneys · grounded in primary & secondary sources — see below
A non-governmental individual or entity that participates in legal proceedings or transactions as opposed to a governmental body.
Sources & Authorities
How it applies
Common Examples
6
Bankruptcy Court Contract Claim
Penelope Price and Pulse Media entered a state-law contract for advertising services before Pulse Media filed for bankruptcy. The bankruptcy court asserted authority to enter final judgment on Price's prepetition breach claim against Pulse Media as part of estate administration. The assignment of this traditional private dispute to a non-Article III tribunal without party consent raises constitutional concerns under Article III.
Peremptory Challenge Discrimination
Pierre Poulin sued Pamela Phillips in civil court for breach of a commercial lease. During jury selection Phillips exercised a peremptory challenge to exclude a prospective juror on the basis of race. Because jury selection constitutes a traditional public function performed with court participation, Phillips as a private litigant may not exercise the challenge in a racially discriminatory manner.
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Cases
Statutes
Restatements
Casebooks
Hornbooks
Course Outlines
Study Supplements
Private Search Scope Limitation
A private party opened and searched a package, revealing its contents to police. Officers then inspected the same items without a warrant. Because the private party had already exposed the contents, the subsequent police inspection did not exceed the private search and raised no Fourth Amendment issue.
Bivens v. Six Unknown Named Agents of the Federal Bureau of Narcotics403 U.S. 388, 91 S.Ct. 1999, 29 L.Ed.2d 619 (1971)
Libel Suit Against Newspaper
Phoebe Park, a private citizen, sued Pulse Media for publishing a false article accusing her of criminal conduct. Because the plaintiff is not a public official, she need only prove negligence rather than actual malice to recover damages. The case illustrates ordinary private-party libel standards.
New York Times v. Sullivan376 U.S. 254 (1964)
Punitive Damages Award
Patrick Phan obtained a large compensatory award against Prosperity Investments for bad-faith insurance denial. The jury also imposed substantial punitive damages. On review the court must ensure the punitive award bears a reasonable relationship to the compensatory damages and to the reprehensibility of the private defendant's conduct.
State Farm Mutual Automobile Insurance Co. v. Campbell538 U.S. 408, 123 S.Ct. 1513, 155 L.Ed.2d 585 (2003)
Agency Rulemaking Challenge
Prism Analytics challenged an administrative rule that imposed new compliance costs on its data-processing business. The company argued the agency exceeded its statutory authority when promulgating the regulation. The reviewing court applies deferential standards to the agency's interpretation while ensuring the rule stays within the bounds Congress set for private regulated entities.
Vermont Yankee Nuclear Power Corp. v. Nat. Res. Def. Council, Inc.467 U.S. 837, 843, 104 S. Ct. 2778, 2781, 81 L. Ed. 2d 694 (1984)
Common questions
Frequently Asked
3
When does a private party's use of state procedures constitute state action?+
A private party becomes a state actor when it jointly participates with state officials in seizing property or when it exercises peremptory challenges that rely on overt court assistance. The key inquiry is whether the private conduct can fairly be attributed to the state.
Supporting sources
May Congress assign state-law contract disputes between private parties to non-Article III courts?+
No. Congress may not wholesale assign cases of the type traditionally heard by Article III courts, such as private contract claims, to bankruptcy courts lacking life tenure and salary protection. Such an assignment violates Article III.
Supporting sources
Does a private search followed by police inspection implicate the Fourth Amendment?+
No. When a private party has already searched a package and revealed its contents, a subsequent police inspection that does not exceed the private search scope is not a Fourth Amendment search.
Supporting sources
376 U.S. 254 (1964)Remedies
…State action and not private action." That proposition has no application to this case. Although this is a civil lawsuit between private parties, the Alabama courts have applied a state rule of law which petitioners claim to impose invalid restrictions on their constitutional freedoms of speech and press. It matters not that that…