An action or proceeding does not abate by the transfer of an interest in the action or proceeding or by any other transfer of an interest. The action or proceeding may be continued in the name of the original party, or the court may allow the person to whom the transfer is made to be substituted in the action or proceeding.
§ 368.5.Transfer of Interest In Action
Title 3. Of the Parties to Civil Actions · Chapter 1. General Provisions · Enacted 1992 · no amendments on record · Last verified July 28, 2026
In one sentenceSection 368.5 provides that a transfer of interest in a pending action or proceeding does not cause it to abate, and the action may continue in the original party's name or be continued by substituting the transferee.
Full Text of § 368.5
Plain-English Summary
Section 368.5 keeps litigation moving when the underlying interest in the case changes hands mid-suit -- for example, when a party sells the property or assigns the claim at issue while the case is still pending. The transfer itself does not end the action.
The court has two options: let the case proceed in the name of the original party, or substitute the person to whom the interest was transferred. Either way, the transfer does not force a restart or a dismissal, giving the court flexibility to manage the case in whichever way keeps it moving efficiently.
Frequently Asked Questions
Does selling the property or claim at issue end a pending lawsuit about it?
No. Section 368.5 states that a transfer of interest does not cause the action to abate.
Who continues the case after a transfer of interest?
The court may allow the case to continue in the name of the original party, or it may substitute the transferee as the party going forward.
Does the court have to substitute the transferee into the case?
No. Section 368.5 gives the court discretion to let the action continue in the original party's name instead, whichever approach better serves the case.
Amendment History
Added by Stats. 1992, Ch. 178, Sec. 11. Effective January 1, 1993.
Source & verification. Section text is reproduced verbatim from
the Deering's California Codes Annotated / vLex. Enacted by the California Legislature.
Last verified July 28, 2026.
· Official source
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