Parties, Roles, and Litigation Teams
Parties
A nominal party is joined for procedural reasons such as holding funds or having a formal interest, without stake in the merits. Nominal parties are disregarded for diversity jurisdiction purposes.
Stakeholders in interpleader are the common example.
Alternative Names:
Nominal Defendant, Formal Party
Why it Matters?
The diversity disregard is the practical significance, since a non-diverse nominal party does not defeat removal and identifying a named defendant as nominal can restore federal jurisdiction. Establishing nominal status requires showing the party has no interest in the outcome rather than merely a small one. Plaintiffs occasionally name marginal parties specifically to defeat diversity, which the doctrine addresses alongside fraudulent joinder.
Frequently Confused with
Related terms
Frequently asked questions
Why does nominal status matter?
What establishes nominal status?
