party in interest

Definitions (2)

1. In general, the entity that generally but not necessarily benefits from the judgment of a law suit, and is legally entitled to enforce the right that is subject matter of the suit.
2. In employee benefit plans, the individual recognized under the Employee Retirement Income Security Act (ERISA) as having a relationship with a retirement plan that prohibits him or her from engaging in certain transactions with the plan. Such persons usually include counsels, custodians, fiduciaries, plan sponsors, service providers, and trustees. also called real party in interest.

Use party in interest in a sentence

You should try to make sure that you understand all that is expected of you when you are the party in interest.

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Susan was in a really bad car accident and her lawyers thought it be best to try and receive damages from the driver. Since she was the party in interest, she would receive the settlement.

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After I sued my company over our retirement plan, our attorneys indicated that I would be listed as the party in interest even though other employees were in the same position as I.

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party prohibited transaction