First To File Rule

AAA

DEFINITION of 'First To File Rule'

A rule stating that whoever is the first to file suit is awarded their home courts. The first to file rule provides an advantage in that the litigator may be familiar with the judge/court, and will not have to incur any extra costs such as travel expenses, nor leave their home for the duration of the trial. The first to file rule is just a general rule. It is not law, and exceptions can be made.

INVESTOPEDIA EXPLAINS 'First To File Rule'

Often, a change of location can be made as per a request, however, you run the risk of offending the local court as well as impeding on another, perhaps more crowded court. This means that the trial may be put on hold and dealt with in the order it was received by the new court which could be a significant delay.

RELATED TERMS
  1. Common Law Property

    A system used by most states to determine ownership of property ...
  2. Formal Tax Legislation

    The process by which a proposed tax rule or tax change may become ...
  3. Tax Court

    A specialized court of law that hears and adjudicates tax-related ...
  4. Judgment Lien

    A court ruling that gives a creditor the right to take possession ...
  5. Judgment

    A court order to the loser of a lawsuit to pay the winner a specified ...
  6. Class Action

    An action where an individual represents a group in a court claim. ...
RELATED FAQS
  1. Does a company have to notify its investors when it faces legal proceedings?

    Not necessarily. The SEC guidelines do not require businesses to publicize legal proceedings if these proceedings are a part ... Read Full Answer >>
  2. What kinds of financial instruments are designated as “Securities” by Cabinet Order?

    In Japan, securities are regulated by the Diet and the Financial Services Agency, or FSA. Rulings about securities come down ... Read Full Answer >>
  3. What's the difference between cash-on-delivery differ and delivery against payment?

    Cash on delivery and delivery versus payment describe different procedures and timing of payments. Cash on delivery describes ... Read Full Answer >>
  4. What are the different ways I can file my income tax return?

    In contractual law, a letter of intent is a document that represents an agreement between parties before the final agreement ... Read Full Answer >>
  5. How are corporate poison pills regulated in the United States?

    The Delaware Supreme Court was the first legal authority to declare poison pills a valid initiative. This defense is either ... Read Full Answer >>
  6. How legally binding is a letter of intent?

    A signatory may be bound to a letter of intent depending on how the letter is drafted. In a business-to-business transaction, ... Read Full Answer >>
Related Articles
  1. Retirement

    Build A Wall Around Your Assets

    Learn how to protect your money from lawsuits, creditors and other judgment proceedings.
  2. Entrepreneurship

    Don't Get Sued: 5 Tips To Protect Your Small Business

    Find out what you can do to limit risk and keep your business running smoothly.
  3. Home & Auto

    Cover Your Company With Liability Insurance

    Every business is susceptible to legal action. Find out how to protect yours.
  4. Investing Basics

    A Guide To Risk Warnings And Disclaimers

    Learn what the phrase "Past performance may not reflect future performance" really means.
  5. Personal Finance

    Litigation: Are Your Investments At Risk?

    Don't let company lawsuits hit you unprepared. Learn how to uncover how they might affect you.
  6. Home & Auto

    Protect Your Company From Employee Lawsuits

    Understanding employment practices liability insurance is easy, once you know the basics.
  7. Economics

    What is a Resident Alien?

    A resident alien is a foreigner who is a permanent resident of the country in which he or she resides but does not have citizenship.
  8. Entrepreneurship

    Employment Negotiations: What To Ask For & How

    Improving their first offer: What you should know
  9. Entrepreneurship

    How To Talk To Headhunters

    8 tips on forging a fruitful relationship with an executive recruiter.
  10. Investing

    Should Amtrak Be Privatized?

    This story examines whether or not Amtrak, the US consumer rail system, should be privatized in the wake of its tragic accident.

You May Also Like

Hot Definitions
  1. Social Security

    A United States federal program of social insurance and benefits developed in 1935. The Social Security program's benefits ...
  2. American Dream

    The belief that anyone, regardless of where they were born or what class they were born into, can attain their own version ...
  3. Multicurrency Note Facility

    A credit facility that finances short- to medium-term Euro notes. Multicurrency note facilities are denominated in many currencies. ...
  4. National Currency

    The currency or legal tender issued by a nation's central bank or monetary authority. The national currency of a nation is ...
  5. Treasury Yield

    The return on investment, expressed as a percentage, on the debt obligations of the U.S. government. Treasuries are considered ...
  6. Bund

    A bond issued by Germany's federal government, or the German word for "bond." Bunds are the German equivalent of U.S. Treasury ...
Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!