Code of Civil Procedure section 367 and standing to sue in California

Code of Civil Procedure section 367 and standing to sue in California are the topic of this blog post. The term standing to sue means the right to relief in court.  In order for a party to have standing to sue they must be the "real party in interest" with respect to the claims sued upon. The California Supreme Court has held that the issue of lack of standing to sue is not waived and may be raised at any time in a legal proceeding.

The law in California states that a party suing on a claim for relief must be the real party in interest unless a specific exception applies.

Except as otherwise provided by statute, "every action must be prosecuted in the name of the real party in interest . . ." Code of Civil Procedure § 367; see also Cloud v. Northrop Grumman Corp. (1998) 67 Cal.App.4th 995, 1004.

Generally, the real party in interest is the person who has the right to sue under the substantive law. It is the person who owns or holds title to the claim or property involved, as opposed to others who may be interested or benefitted by the litigation. Gantman v. United Pac. Ins. Co. (1991) 232 Cal.App.3d 1560, 1566.

Plaintiff's lack of standing to sue on the claim is treated as a “jurisdictional” defect and is not waived by defendant's failure to raise it by demurrer or answer. “(C)ontentions based on a lack of standing involve jurisdictional challenges and may be raised at any time in the proceeding.” Common Cause of Calif. v. Board of Supervisors (1989) 49 Cal. 3d 432, 438; see also  Associated Builders & Contractors, Inc. v. San Francisco Airports Comm'n (1999) 21 Cal. 4th 352, 361.

The purpose of the real party in interest requirement is to assure that any judgment rendered will bar the owner of the claim sued upon from relitigating. "It is to save a defendant, against whom a judgment may be obtained, from further harassment or vexation at the hands of some other claimant to the same demand." Giselman v. Starr (1895) 106 Cal. 651, 657; see also Cloud v. Northrop Grumman Corp. supra at 1003.

Any party served with a summons and complaint should consider the issue of standing to sue. This is particularly true if they are the defendant in a collection case. This is due to the fact that in collection cases involving junk debt buyers the issue of lack of standing to sue often comes up.  Many if not most junk debt buyers cannot clearly show standing to sue.  This means that a motion for summary judgment, motion for nonsuit or motion for judgment might be appropriate depending on the circumstances of the case and the trial date.

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The author of this blog post, Stan Burman, is an entrepreneur and freelance paralegal who has worked in California and Federal litigation since 1995 and has created over 245 sample legal documents for sale.

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Copyright 2014 Stan Burman.

DISCLAIMER:

Please note that the author of this blog post, Stan Burman is NOT an attorney and as such is unable to provide any specific legal advice. The author is NOT engaged in providing any legal, financial, or other professional services, and any information contained in this blog post is NOT intended to constitute legal advice.

The materials and information contained in this blog post have been prepared by Stan Burman for informational purposes only and are not legal advice. Transmission of the information contained in this blog post is not intended to create, and receipt does not constitute, any business relationship between the author and any readers. Readers should not act upon this information without seeking professional counsel.
DISCLAIMER:
Please note that the author of this blog post, Stan Burman is NOT an attorney and as such is unable to provide any specific legal advice. The author is NOT engaged in providing any legal, financial, or other professional services, and any information contained in this blog post is NOT intended to constitute legal advice.
The materials and information contained in this blog post have been prepared by Stan Burman for informational purposes only and are not legal advice. Transmission of the information contained in this blog post is not intended to create, and receipt does not constitute, any business relationship between the author and any readers. Readers should not act upon this information without seeking professional counsel.