Collusive Action Law and Legal Definition

Collusive action is an action between parties who have no actual controversy. The parties pretend to be adversaries and the lawsuit is brought merely for the purpose of determining a legal question or receiving a precedent that might prove favorable in related litigation. The action will be dismissed if a judge determines it does not involve a true controversy. Such suits are not entertained in federal courts because the Constitution requires an actual case or controversy. State courts also prohibit collusive actions.