In the United States, a friendly suit is most often used when two parties desire or require judicial recognition of a settlement agreement, and so one sues the other despite the lack of conflict between them.
The law condones this practice because there are several benefits to settling a lawsuit as opposed to settling a claim outside of a lawsuit. First, if one of the parties to the claim is a minor, they usually cannot settle the claim without the appointment of a guardian ad litem to review and accept the settlement. Once the suit is filed, and the settlement is reviewed by the ad litem who considers the best interest of the child, after which the parties can then file a joint motion for the court to render judgment, which would then be binding on all parties regardless of their minority.
When there is a judgment, the parties also gain the defense of res judica if sued again on the same topic.
Friendly suits are generally prohibited in the Article III courts of the United States. As in United States v. Johnson, 319 U.S. 302 (1943). In practice, however, friendly suits are rarely explicitly described as such, and they could easily slip into the judicial system through some casual omissions.
Famous quotes containing the words friendly and/or suit:
“In time, after a dozen years of centering their lives around the games boys play with one another, the boys’ bodies change and that changes everything else. But the memories are not erased of that safest time in the lives of men, when their prime concern was playing games with guys who just wanted to be their friendly competitors. Life never again gets so simple.”
—Frank Pittman (20th century)
“Class isn’t something you buy. Look at you. You have a $500 suit on and you’re still a lowlife.”
—Roger Spottiswoode, U.S. screenwriter, Walter Hill, and Larry Gross. Jack Cates (Nick Nolte)