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. Tax Court

    A specialized court of law that hears and adjudicates tax-related ...
  3. Formal Tax Legislation

    The process by which a proposed tax rule or tax change may become ...
  4. Judgment Lien

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

    Legal recompense that is levied as punishment for a wrong or ...
  6. Class Action

    An action where an individual represents a group in a court claim. ...
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. Investing

    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 of ordinary business and are not expected to cost more than 10% of ...
  6. 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.
  7. Home & Auto

    Protect Your Company From Employee Lawsuits

    Understanding employment practices liability insurance is easy, once you know the basics.
  8. Professionals

    What are the main communication points between a CFO and a CEO?

    Explore key communication points between CEOs and CFOs. Learn how each of these officers has a fiduciary duty to stockholders, employees and the public.
  9. Economics

    The Economic Impact of Better US-Cuba Relations

    We examine what the normalization of relations between the US and Cuba will mean for the two countries' economies.
  10. Brokers

    How does lack of corporate social responsibility hurt a company's bottom line?

    Learn about the perils of a lack of corporate social responsibility. Examine the WorldCom fraud, which led to its bankruptcy and imprisonment for its officers.

You May Also Like

Hot Definitions
  1. Commercial Paper

    An unsecured, short-term debt instrument issued by a corporation, typically for the financing of accounts receivable, inventories ...
  2. Federal Funds Rate

    The interest rate at which a depository institution lends funds maintained at the Federal Reserve to another depository institution ...
  3. Fixed Asset

    A long-term tangible piece of property that a firm owns and uses in the production of its income and is not expected to be ...
  4. Break-Even Analysis

    An analysis to determine the point at which revenue received equals the costs associated with receiving the revenue. Break-even ...
  5. Key Performance Indicators - KPI

    A set of quantifiable measures that a company or industry uses to gauge or compare performance in terms of meeting their ...
  6. Bank Guarantee

    A guarantee from a lending institution ensuring that the liabilities of a debtor will be met. In other words, if the debtor ...
Trading Center