Upon any transfer of interest, the action may be continued by or against the original parties unless the court directs the person to whom the interest is transferred to be substituted or joined in the action.
§ 1018.Substitution upon transfer of interest
Article 10. Parties Generally · Last amended 1963 · Last verified July 21, 2026
In one sentenceCPLR 1018 lets a lawsuit continue in the names of the original parties even after a transfer of interest, unless the court directs that the transferee be substituted for or joined with the original party.
Full Text of CPLR 1018
Plain-English Summary
Interests change hands during litigation -- a party sells a piece of property, assigns a claim, or transfers a business interest while the case is still pending. CPLR 1018 lets the lawsuit continue under the original parties' names by default, without forcing a substitution every time an interest changes hands mid-case.
But that default isn't absolute. The court can direct that the person who received the transferred interest be substituted for the original party, or joined alongside them, if the case calls for it. That flexibility lets the court decide, based on the circumstances, whether the new interest-holder needs to be brought in formally or whether the case can proceed as it stands.
The rule reflects a practical reality: requiring substitution every time a transfer occurs would slow down litigation over changes that often don't affect how the case needs to be litigated. Letting the original parties carry the case forward, with the court free to order otherwise, keeps the docket moving without ignoring transfers that do matter.
Frequently Asked Questions
What happens if a party transfers their interest during a New York lawsuit?
Under CPLR 1018, the action may continue by or against the original parties unless the court directs that the person who received the transferred interest be substituted or joined.
Do I have to substitute a new party every time an interest is transferred in New York litigation?
No. CPLR 1018 lets the case proceed under the original parties' names by default; substitution or joinder only happens if the court orders it.
Can a court require the new owner of a transferred interest to join a New York lawsuit?
Yes. CPLR 1018 gives the court authority to direct that the transferee be substituted for, or joined with, the original party.
What counts as a transfer of interest under CPLR 1018?
The rule doesn't limit the term to any one kind of transaction; it applies broadly whenever an interest a party holds in the litigation changes hands during the case.
Why doesn't New York require automatic substitution after a transfer of interest?
CPLR 1018 favors continuity, letting the case proceed under the original parties unless the court finds a need to bring in the transferee, which avoids slowing down litigation over transfers that don't change how the case needs to be tried.
Advisory Committee Notes
This provision is taken from Federal rule 25(c), which was derived from CPA § 83, which in turn stems from § 101 of the Field code. The notion that a transfer of interest should not require a substitution of parties unless the court so orders has met with favor throughout the years and has not given rise to difficulty. It will be noted that the aspects of § 83 dealing with devolution on other parties to the action are covered by new CPLR § 1015(b), as in Federal rule 25(a)(2).
Amendment History
Add, L 1962, ch 308, eff Sept 1, 1963.
Source & verification. Provision text, History, and Advisory
Committee Notes are reproduced verbatim from the Consolidated Laws of New York.
Last verified July 21, 2026.
· Official source
Also known as: CPLR 1018 New Yorktransfer of interest lawsuit New Yorksubstitution after assignment of claim New Yorkparty sells interest during litigation New Yorkassignee joined to lawsuit New YorkNew York civil procedure transfer of interestsuccessor in interest lawsuit substitution