RACE TO THE COURTHOUSE
race to the courthouse. 1.Bankruptcy. The competition among creditors to make claims on
assets, usu. motivated by the advantages to be gained by those who act first in preference to other
creditors. • Chapter 11 of the Bank-ruptcy Code, as well as various other provisions, is intended to
prevent a race to the courthouse and instead to promote equality among creditors. [Cases:
Bankruptcy 3442. C.J.S. Bankruptcy §§ 351–352.] 2.Civil pro-cedure. The competition between
disputing parties, both of whom know that litigation is inevitable, to prepare and file a lawsuit in a
favorable or convenient forum before the other side files in one that is less favorable or less
convenient. • A race to the courthouse may result after one party informally accuses another of
breach of contract or intellectual-property infringement. When informal negotiations break down,
both want to resolve the matter quickly, usu. to avoid further business disruption. While the
accuser races to sue for breach of contract or in-fringement, the accused seeks a declaratory
judgment that no breach or infringement has occurred. See ANTICIPATORY FILING. [Blacks Law 8th]