Key Takeaways

  • A third-party claim allows a defendant to bring another party into a lawsuit who may share legal liability.
  • These claims are common in both civil litigation and insurance, especially in personal injury and workers’ compensation cases.
  • Third-party claims can involve apportioning negligence or seeking indemnity from another responsible party.
  • Workers injured on the job may file third-party claims against non-employer parties, like equipment manufacturers or property owners.
  • First-party insurance claims are contractual; third-party claims typically stem from tort liability.
  • A third party claim lawyer can help identify liable parties and navigate procedural complexities in litigation or insurance disputes.

Third-party claim legal definition is something you should know if you are a defendant in a legal case attempting to bring in a third party to share your liability or the third party who has been brought into a case. Since third party claims are not uncommon, most jurisdictions have laws in place to impose limits on them. These claims are especially common in insurance-related legal cases where parties other than policyholders are held liable in claims.

What Is a Third-Party Claim?

A third party claim refers to a claim made by a defendant during the course of legal proceedings with the intention of enjoining an individual or entity that is not involved in the original action to perform a related duty. One good example of a third party claim is an indemnity claim against a third party. In some situations, third party proceedings are undertaken to determine how negligence should be apportioned between a defendant and a third party.

Besides providing litigation benefit for the defendant who brings in a third party, the final disposition can potentially lead to the formation of res judicata between the defendant and the third party. It is fairly common for a defendant to draw another person into a legal case to share the risk, so many jurisdictions have rules that set forth the limits of third party claims. For instance:

  • According to the U.S. Federal Practice Rules, a defendant may serve a summons and complaint as a third-party plaintiff on a nonparty who may be partly or fully liable for the claim against it.
  • According to the Conduct of Civil Litigation, a third party proceeding is a cause of action a defendant asserts against a third party that may be independent or dependent upon a cause of action that exists between the plaintiff and the defendant.

Third-Party Claims in Workers’ Compensation Cases

Workers injured on the job are typically entitled to workers’ compensation, but this does not bar them from pursuing a third-party claim against another negligent party. For example:

  • A delivery driver hit by a negligent motorist can file a third-party claim against the driver, while still receiving workers' comp benefits.
  • A factory worker injured by a defective machine can sue the manufacturer through a third-party claim.
  • A construction worker injured by a subcontractor’s negligence may pursue a third-party action for additional damages.

A third party claim lawyer can help injured workers recover damages that go beyond what workers' comp offers, such as full compensation for pain and suffering or future lost earnings.

When Are Third-Party Claims Filed?

Third-party claims are often filed when a defendant in a lawsuit believes another individual or entity shares some or all of the liability. These are particularly useful in complex liability cases involving multiple parties, such as:

  • Construction site accidents, where a subcontractor, equipment manufacturer, or property owner may be partially responsible.
  • Car accidents, when a driver may seek contribution or indemnification from a vehicle manufacturer or road maintenance company.
  • Premises liability, if a property manager or vendor shares fault for injuries on the premises.
  • Product liability, where a seller or distributor may be brought into a suit originally filed against the manufacturer.

In civil procedure, a third-party claim allows the defendant (third-party plaintiff) to serve a summons and complaint on the new party (third-party defendant) without the original plaintiff needing to modify their lawsuit.

A third party claim lawyer plays a crucial role in identifying viable third-party defendants and ensuring compliance with procedural rules to avoid dismissal of the claim.

First Party and Third Party Insurance Claims

A first-party insurance claim refers to a claim that a policyholder files with an insurance company. Such a claim is contractual by nature and contingent on the insurance policy's specific language.

One example of a first-party insurance claim is a claim made by a homeowner whose home has been damaged in a fire. In this case, the homeowner makes a claim with his or her insurance provider to seek compensation for the damage to his or her home and the repair costs incurred. The compensation that the homeowner will receive from the insurer depends on the type or types of coverage included in the insurance policy. This is why it is essential for homeowners to know exactly what types of losses are covered and not covered by their policies.

A third party insurance claim is a claim made by someone other than the policyholder or the insurance provider. In this case, the insurer may be regarded as the second party. A liability claim is the most common form of a third-party insurance claim.

For instance, if your negligence resulted in an accident on a freeway and caused a passenger in another vehicle to sustain injuries, the injured person has the right to file a claim against your insurer. Since no contract exists between your insurance provider and the injured passenger, the passenger, who is the third party, is entitled to seek compensation for losses that may not be covered by your insurance policy. Some examples of such losses include:

  • Medical expenses
  • Loss of wages
  • Compensation for pain and suffering

It is common for a third-party claim to be called a liability claim because someone other than the policyholder is liable for the losses sustained by the third party. In the event that your insurance company is unwilling or unable to arrive at a settlement< with the third party, the third party may bring the claim to the tort system.

If you are wondering if it is possible for a first-party insurance claimant to file a lawsuit, the answer is “yes.” Although the losses covered by a first-party insurance policy are stated in the contract, an insurance company may not always pay everything it is legally required to. This is called bad faith insurance practice in the insurance industry.

Third-Party Insurance Claim Process and Legal Support

Filing a third-party insurance claim involves several steps and often requires careful documentation and legal guidance:

  1. Filing a Claim: The third party (e.g., an injured individual) must notify the at-fault party’s insurer.
  2. Investigation: The insurer investigates the incident, gathers statements, and reviews damages.
  3. Settlement Negotiations: The insurer may offer a settlement based on policy limits and evidence.
  4. Litigation (if necessary): If no settlement is reached, the third party may file a lawsuit to pursue compensation.

Challenges may arise when insurers deny claims or offer inadequate settlements. A third party claim lawyer helps navigate negotiations, assess liability, and pursue litigation if needed.

What Damages Can Be Recovered in a Third-Party Claim?

Unlike workers’ compensation, which limits recovery to medical bills and lost wages, third-party claims may provide full compensation for a broader range of losses:

  • Medical expenses (past and future)
  • Lost wages and reduced earning capacity
  • Pain and suffering
  • Emotional distress
  • Loss of consortium
  • Property damage

This makes third-party claims a critical legal tool for those who have suffered significant harm due to another’s negligence. A third party claim lawyer can assess the full scope of recoverable damages and fight for fair compensation.

Frequently Asked Questions

  • What does a third-party claim lawyer do?
    A third party claim lawyer represents defendants or third parties in litigation where another party is brought into the case to share liability. They also assist in insurance disputes and injury claims involving third parties.
  • Can I file a third-party claim in addition to workers' compensation?
    Yes. Workers may file a third-party claim against a non-employer who contributed to their injury, even while receiving workers' compensation benefits.
  • Is a third-party insurance claim the same as a liability claim?
    Yes. A third-party insurance claim typically refers to liability claims filed by someone who is not the policyholder or the insurer.
  • Who qualifies as a third party in legal claims?
    Any individual or entity not originally named in the lawsuit who may bear legal responsibility can be considered a third party.
  • How can I find the right third party claim lawyer?
    You can find a qualified third party claim lawyer on UpCounsel. The platform features top-rated attorneys with experience in personal injury, insurance, and liability law.

If you need help understanding third party claim legal definition, you can post your legal need on UpCounsel's marketplace. UpCounsel accepts only the top 5 percent of lawyers to its site. Lawyers on UpCounsel come from law schools such as Harvard Law and Yale Law and average 14 years of legal experience, including work with or on behalf of companies like Google, Menlo Ventures, and Airbnb.