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nominal party

n. a defendant or a plaintiff included in a lawsuit because of a technical connection with the matter in dispute, and necessary for the court to decide all issues and make a proper judgment, but with no responsibility, no fault and no right to recovery. Example: suing an escrow holder or trustee who is holding a title to real property or deposited funds but has no interest in the property, funds or the lawsuit. Thus the court can order the nominal defendant to transfer title or pay out the funds when the rights of the real parties are decided.

See also: necessary party  party 

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The People's Law Dictionary by Gerald and Kathleen Hill Publisher Fine Communications