Collusive Action Definition and Legal Meaning

On this page, you'll find the legal definition and meaning of Collusive Action, written in plain English, along with examples of how it is used.

What is Collusive Action?

History and Meaning of Collusive Action

Collusive action is commonly used in legal proceedings as a term for a fraudulent lawsuit brought by parties who are secretly working together. The intention is to defraud or deceive the court by simulating a legal contest when there is actually no real dispute between the parties. Collusive action is also known as a collusive lawsuit.

One of the primary motives behind a collusive action is often to obtain a favourable judgment in a case that could not otherwise be won. This may be achieved by falsifying evidence, deliberately withholding information from the court, or by other forms of deception or manipulations that cheat the legal system.

However, if the court learns or suspects that the lawsuit is collusive, the judge may dismiss the case and impose sanctions, which may include payment of legal fees and other penalties.

Examples of Collusive Action

1. A motorist who intentionally causes an accident with an acquaintance in order to receive compensation for damages from an insurance policy.
2. A landlord who files a lawsuit against his tenant to force an eviction, despite having no valid grounds for doing so, in order to speed up the eviction process.
3. A bank that initiates legal action against a debtor in collusion with other creditors to ensure that its debts are paid first.

Legal Terms Similar to Collusive Action

1. Conspiracy: This term is used to describe an agreement between two or more people to commit an illegal or fraudulent act.
2. Fraud: The act of intentionally deceiving someone else to gain a benefit or advantage at their expense.
3. Perjury: Giving false testimony under oath in a court of law.