Cross-Claim vs Third-Party Complaint in Law - What is The Difference?

Last Updated Feb 2, 2025

A third-party complaint occurs when a defendant brings another party into a lawsuit, claiming that this third party is responsible for some or all of the damages. This legal action helps distribute liability and clarify responsibility in complex cases involving multiple parties. Explore the rest of the article to understand how a third-party complaint might affect your case and legal strategy.

Table of Comparison

Aspect Third-Party Complaint Cross-Claim
Definition A claim filed by a defendant against a third party not originally sued, alleging liability for all or part of the plaintiff's claim. A claim filed by one defendant against another co-defendant or by one plaintiff against another co-plaintiff in the same lawsuit.
Purpose To bring a third party into the lawsuit who may be liable for plaintiff's damages. To resolve disputes between parties on the same side of the main litigation.
Parties Involved Defendant and third party (not originally part of the lawsuit). Parties who are already co-defendants or co-plaintiffs.
Effect on Litigation Expands the lawsuit by adding new parties and claims. Consolidates claims within existing parties without adding new parties.
Procedural Rules Generally governed by Rule 14 of the Federal Rules of Civil Procedure. Generally governed by Rule 13(g) of the Federal Rules of Civil Procedure.
Timing Must be filed promptly after defendant answers, typically with court permission if delayed. Can be filed any time during the litigation consistent with court rules.

Understanding Third-Party Complaints

A third-party complaint allows a defendant to bring another party into the lawsuit, alleging that this third party is liable for all or part of the plaintiff's claim against the defendant. This procedural tool is essential for shifting or sharing liability and ensures efficient resolution by consolidating related claims. Understanding third-party complaints involves recognizing their role in expanding the scope of litigation beyond the original parties to address all potential responsible entities in a single case.

What Is a Cross-Claim?

A cross-claim is a legal claim filed by one defendant against another defendant in the same lawsuit, arising from the original subject matter of the case. It is intended to resolve disputes between co-parties without involving third parties, streamlining litigation by addressing related issues collectively. Unlike a third-party complaint that brings an outside party into the case, a cross-claim remains within the original group of defendants or plaintiffs.

Key Differences Between Third-Party Complaints and Cross-Claims

Third-party complaints involve a defendant bringing a new party into a lawsuit, alleging that this third party is liable for all or part of the plaintiff's claim. Cross-claims, in contrast, are claims asserted between co-parties--such as co-defendants or co-plaintiffs--relating to the same underlying incident. The key difference lies in the parties involved: third-party complaints introduce external parties, while cross-claims are internal disputes among existing parties.

Legal Basis for Third-Party Complaints

Third-party complaints arise under Rule 14 of the Federal Rules of Civil Procedure, allowing a defendant to bring a third party into the lawsuit if that party may be liable for all or part of the plaintiff's claim. This legal basis establishes that the purpose of third-party complaints is to share liability or allocate damages among parties who are not originally part of the primary action. By contrast, cross-claims involve claims between co-defendants or co-plaintiffs based on the same transaction or occurrence and are governed by Rule 13(g).

Legal Basis for Cross-Claims

Cross-claims arise under Federal Rule of Civil Procedure 13(g), allowing a defendant to assert claims against co-defendants or co-plaintiffs connected to the original action or arising from the same transaction or occurrence. Unlike third-party complaints governed by Rule 14, which bring in new parties not initially involved, cross-claims involve parties already in the lawsuit and must relate to the subject matter of the original claim. The legal basis mandates that cross-claims promote judicial efficiency by resolving all related disputes between existing parties in a single proceeding.

Procedural Requirements for Filing

A third-party complaint requires the defendant to implead a non-party alleged to be liable for all or part of the plaintiff's claim, following the procedural rules under Rule 14 of the Federal Rules of Civil Procedure and typically must be filed within a specific time frame after serving the original answer. A cross-claim, governed by Rule 13(g), is filed by one party against a co-party and asserts a claim related to the original action or counterclaim, with fewer procedural hurdles and typically filed as part of the responsive pleadings. Both pleadings demand proper service and adherence to court deadlines to ensure timely inclusion in the litigation process.

Common Scenarios for Third-Party Complaints

A third-party complaint commonly arises when a defendant believes another party is partially or wholly liable for the plaintiff's claim, as seen in cases involving subcontractor disputes or product liability where manufacturers are implicated. In construction litigation, a general contractor often files a third-party complaint against subcontractors to allocate responsibility for defects or delays. Similarly, in insurance claims, insured parties may bring third-party complaints against policy providers or related entities to shift indemnification obligations.

Typical Situations for Cross-Claims

Cross-claims typically arise when co-defendants or co-plaintiffs assert claims against each other within the same lawsuit, often involving disputes over indemnity, contribution, or allocation of liability. Common scenarios include when one defendant seeks to hold a co-defendant responsible for all or part of the plaintiff's claim, or when a plaintiff asserts claims against a co-plaintiff based on contractual disagreements or joint tortious acts. These internal claims help streamline litigation by resolving related disputes among parties who are already before the court.

Strategic Considerations for Litigants

Filing a third-party complaint allows defendants to bring in additional parties potentially liable, strategically shifting liability and expanding the scope of the lawsuit. Cross-claims enable parties on the same side of the litigation to assert claims against each other, which can be used to consolidate related disputes and streamline resolution. Litigants must weigh the benefits of procedural efficiency against increased complexity and potential delay when deciding between third-party complaints and cross-claims.

Impact on Litigation Outcomes

Third-party complaints expand litigation by introducing new parties, potentially increasing complexity and shifting liability, which may alter settlement dynamics and trial strategies. Cross-claims focus on disputes among existing parties, often streamlining issues and clarifying responsibility without broadening the scope of the case. Understanding these procedural tools is crucial for optimizing case management and influencing favorable litigation outcomes.

Third-Party Complaint Infographic

Cross-Claim vs Third-Party Complaint in Law - What is The Difference?


About the author. JK Torgesen is a seasoned author renowned for distilling complex and trending concepts into clear, accessible language for readers of all backgrounds. With years of experience as a writer and educator, Torgesen has developed a reputation for making challenging topics understandable and engaging.

Disclaimer.
The information provided in this document is for general informational purposes only and is not guaranteed to be complete. While we strive to ensure the accuracy of the content, we cannot guarantee that the details mentioned are up-to-date or applicable to all scenarios. Topics about Third-Party Complaint are subject to change from time to time.

Comments

No comment yet