Terminology | ClassActionWorld

Class Action World has the answers to your questions concerning basic legal terminology. For example, Class Action World explains the meaning of terms and phrases such as: Absent Class Member, Adequacy, Affidavit, Attorney-Client Privilege, Bluesky Law, Burden of Proof, Cause of Action, Certification, Circumstantial Evidence, Civil Action Claim, Class Counsel, Class Representative, Complaint, Contingent Fee, Counter-Claim, Crossclaim, Damages, Default Judgment, Defendant, Deposition, Directed Verdict, Discovery, Docket, Fiduciary, Fraud, Hearing, Impleader, Indicia, Injunction, Insider Trading, Interrogatories, Joint and Several Liability, Jurisdiction, Jury Trial, Leave of Court, Liability, Limited Liability, Limited Partnership, Liquidated Damages, Litigants, Litigation, Long Arm Statutes, Malpractice, Margin, Market Manipulation, Material, Mediation, Mens Rea, Merger, Motion, Mutual Fund, Negligence, Net Settlement Fund, Notary Public, Notice Of Settlement, Objection, On the Merits, Order, Parol Evidence Rule, Partnership, Party, Perjury, Piercing Corporate Veil, Plaintiff, Plan of Allocation, Pleadings, Power of Attorney, Precedent, Preliminary Hearing, Preponderance of Evidence, Prima Facie, Prospectus, Proxy, Recklessness, Reliance, Respondent, Retainer, Scienter, Security, Service of Process, Settlement, Standing, Statue of Limitations, Stipulation, Subpoena, Summary Judgment, Summons, Testimony, Trial, Third Party, Unjust Enrichment, Vacate, Venue, Vicarious Liability, Voir Dire, and Waiver.

Absent Class Member: A person who is a member of the class but is not named in the complaint and does not actively participate in the litigation.
Adequacy: Propriety of sufficiency of legal representation by class counsel.
Affidavit: A written statement sworn to be true before an authorized individual such as a notary public.
Attorney-Client Privilege: The right of a person and duty of his attorney to keep their communications confidential.
Appeal: A procedure where a party to a legal proceeding asks a higher court to reverse or modify a lower court's decision.
Bluesky Law: State laws regulating sales of securities for purpose of protecting the public from fraud.
Burden of Proof: The responsibility of a party to a litigation to persuade a judge or jury that the evidence proves its side of the case.
Cause of Action: The reason a complaint may be filed with the court. The cause of action is the specific grievance or violation that gives grounds for a legal action.
Certification: A form used to affirm the truthfulness of a representation.
Circumstantial Evidence: Indicia that support a belief.
Civil Action: A court proceeding that is not a criminal case and seeks monetary damages.
Claim: A demand for resolution or remedy, or for something that is rightly the claimant's.
Class Counsel: The attorney or attorney firms appointed by the court to represent the interests of class members.
Class Representative: A class member appointed by the court to act as the representative of the class (Lead Plaintiff).
Complaint: The document that begins a court action. In a civil case it is filed with the court and outlines the grievance alleged and the remedy sought.
Contingent Fee: A fee that is based upon a percentage of a recovery and is payable only if there is a successful conclusion.
Counter-Claim
Crossclaim: A claim filed by one party against a co-party in a lawsuit, such as one defendant against a co-defendant.
Damages: The money which is sought from a defendant by a plaintiff or the amount awarded to the plaintiff as a remedy for injury or wrongdoing.
Default Judgment: A judgment in a lawsuit against a defendant who fails to offer a defense or to appear in court.
Defendant: A person who is charged with a wrongdoing.
Deposition: Pre-trial testimony given under oath in front of a court reporter, which may be used as evidence in a trial.
Directed Verdict: A verdict handed down by a trial judge without consideration of the jury, because the facts presented and the applicable law left no question as to the verdict.
Discovery: A pre-trial process in which each party requests relevant information and documents from the other.
Docket: A brief record of all important actions in court, from the beginning to the end of a case.
Fiduciary: A person who stands in a special relationship of trust with another person and must place the interests of the other person above the fiduciary's own interest.
Fraud: Making false statements or misrepresentations of material facts (or failing to act or remaining silent when an obligation to speak exists) in order to benefit by deceiving another.
Hearing: A court proceeding in which the court listens to or receives evidence.
Impleader: Legal procedure in which a third party who may be liable for all or part of the plaintiff's claims is brought into an action.
Indicia: Distinctive signs that support a belief.
Injunction: Court document that prohibits or directs a party from performing a particular action.
Insider Trading Engaging in financial transactions based on material non-public information.
Interrogatories: Written questions that must be answered under oath.
Joint and Several Liability: The sharing of liability, both individually and collectively.
Jurisdiction: Sphere of authority empowered to rule on questions of law.
Jury Trial: A judicial examination of fact whose outcome is decided by a jury.
Leave of Court: Permission from the court to take an otherwise non-permissible action.
Liability: The extent of responsibility for a loss.
Limited Liability: A business which is liable for losses and obligations, but whose owners are not personally liable.
Limited Partnership: A specific type of partnership involving at least one general partner and one limited partner. Limited partners are generally not responsible for debts or losses of the partners.
Liquidated Damages: An amount of damages that is agreed upon by both parties in a contract.
Litigants: Participants to a lawsuit (plaintiffs or defendants).
Litigation: The process of bringing a lawsuit before a court to resolve a problem or seek remedy for a harm.
Long Arm Statutes: Laws that allow a state to extend its jurisdiction to individuals or organizations not residing in that state.
Malpractice: A misconduct or unreasonable action by a professional that results in harm.
Margin: Borrowing money from a stockbroker to transact a securities transaction.
Market Manipulation: The act of influencing the price or pattern of trading of a security.
Material: That which a resonable person would consider important to a decision.
Mediation: A private, informal process of resolving disputes through use of an impartial third party who suggests a compromise.
Mens Rea: A "criminal intent" or "guilty mind".
Merger: The joining and transformation of two items (contracts, companies, debts, and obligations) into one.
Motion: A formal request to a court to take a specific action.
Mutual Fund: A company which uses its shareholders' money to buy and sell stocks.
Negligence: The failure to act in a manner considered reasonable or prudent under the circumstances.
Net Settlement Fund: The remainder in a settlement fund after the payment of applicable court approved fees and expenses.
Notary Public: An individual who is authorized to attest to legal documents, administer oaths, and certify the authenticity of signatures.
Notice Of Settlement: A legal document that outlines the nature of the case, and describes the manner in which the net settlement fund will be distributed.
Objection: Stating, for the record in a legal proceeding that a statement made or the evidence presented is improper to a party in the proceeding.
On the Merits: Decision or judgment that is based on facts.
Order: Written instruction or direction issued by a judge.
Ordinary Course of Business: The usual transactions, customs and practices of a business.
Parol Evidence Rule: A rule that limits the ability to introduce testimony regarding the meaning of a written document.
Partnership: A type of business organization involving two or more people who carry on, as co-owners, a business for profit. Partners are personally responsible for the debts of the business.
Party: A person or entity who is the plaintiff or defendant in a lawsuit.
Perjury: Making a deliberately false statement while under oath.
Piercing Corporate Veil: Not permitting individuals to avoid liability for the actions holding them responsible for the actions of the corporation which they control.
Plaintiff: The complaining party in a civil law suit.
Plan of Allocation: The plan used to determine the compensatory damages, sustained by each individual claimant as well as the whole Class.
Pleadings: Documents which set forth the claims and defenses asserted in a lawsuit.
Power of Attorney: A document that gives one person the right to act for another.
Precedent: Court decision that influences the outcome of a later decision.
Preliminary Hearing: The presentation of evidence and testimony to a court that does not result in a final decision in the proceeding.
Preliminary Injunction: The lowest level of proof required in a civil case, where one side's case is considered to be more provable than the other's based uponn the evidence presented.
Prima Facie: Latin for "On its face," or "at first view."
Prospectus: A document which describes a company, its practices, and its finances and is available for distribution to prospective purchasers of securities.
Proxy: A document which gives a person or organization the power to represent or serve in the place of another.
Recklessness: A conscious and willful disregard for what is prudent and safe based on the circumstances.
Reliance: Basing decisions and actions on the representations of another.
Respondent: A person or party who responds to a complaint.
Retainer: An advance fee paid to an attorney for professional services.
Scienter: Acting or failing to act with a level of knowledge so as to make a person civilly responsible for their actions or inactions.
Security: A document such as a stock or bond, that is ordinarily traded on a recognized exchange.
Service of Process: The delivery of notice of court proceedings to the defendant.
Settlement: The resolution of a dispute before a final decision of a judge or jury.
Standing: The legal right to bring a case into the judicial system.
Statue of Limitations: The maximum amount of time that can pass during which a matter can be brought before a court.
Stipulation: An agreement made between parties before the court.
Subpoena: A court order to appear in court or to produce evidence.
Summary Judgment: A court decision made prior to trial based upon a claim made by a party that even if the factual assertions of the opposing party are found true a meritorious result cannot be obtained by the opposing party.
Summons: A notice delivered by an authorized person of the court informing a person of their involvement in a lawsuit.
Testimony: Statements made under oath and memorialized by a court reporter.
Trial: The adversarial process of resolving disputes in a court of law.
Third: A person or entity who is not the plaintiff or defendant in a lawsuit.
U. S. Attorney: An attorney working for the United States, who is responsible for prosecuting federal crimes.
Underwriter: In the securities context, the underwriter is a financial institution that buys the issuer's securities and then resells them to investors.
Unjust Enrichment: An instance in which one party has gained a windfall at the expense of another party.
Vacate: A decision by a higher court to overrule a decision of a lower court.
Venue: The appropriate jurisdiction for a trial.
Verdict: The decision reached by a judge or jury in a trial.
Vicarious Liability: Responsibility for the acts of a subordinate in the workplace.
Voir Dire: The process by which attorneys and/or judges examine potential jurors to see if they are competent to sit on a jury.
Waiver: The voluntary giving up of a known right.