When the legal title to any claim or chose in action, for the enforcement of the collection of which a court of equity has jurisdiction, is in one person and the beneficial equitable title thereto is in another, the latter may either maintain a suit in the name of the holder of the legal title for his use and benefit or in his own name to enforce collection of the same. In either case the beneficial equitable owner shall be deemed the real plaintiff and shall be liable for costs.
§ 8.01-12.Suit by beneficial owner when legal title in another.
Chapter 2. Parties · Article 2. Special Provisions · Last amended 1977 · Last verified July 16, 2026
In one sentenceSection 8.01-12 lets the beneficial equitable owner of a claim or chose in action, whose legal title is held by someone else, maintain suit in the titleholder’s name for the owner’s benefit or in the owner’s own name, treating the beneficial owner as the real plaintiff liable for costs.
Full Text of § 8.01-12
Plain-English Summary
Sometimes legal title to a claim or chose in action sits in one person’s name while the real economic interest belongs to another — a common arrangement in equity practice. Section 8.01-12 addresses that split for claims of the kind a court of equity has jurisdiction to enforce collection of. The beneficial equitable owner has a choice: maintain a suit in the name of the legal titleholder, for the beneficial owner’s use and benefit, or bring the suit in the beneficial owner’s own name directly.
Either way the case is styled, the section treats the beneficial equitable owner as the real plaintiff, and that owner is liable for costs. The choice of caption does not change who controls, and answers for, the litigation.
Frequently Asked Questions
Who can sue to collect a claim when legal title is in one person but the real interest belongs to another?
Section 8.01-12 lets the beneficial equitable owner maintain the suit, either in the name of the legal titleholder for the owner’s use and benefit, or in the beneficial owner’s own name.
Is the beneficial owner responsible for costs even if the suit is brought in someone else’s name?
Yes. Section 8.01-12 deems the beneficial equitable owner the real plaintiff regardless of caption, and makes that owner liable for costs.
Does this section apply to every kind of claim, or only certain ones?
It applies to a claim or chose in action for the enforcement of the collection of which a court of equity has jurisdiction.
Can the beneficial owner choose to sue in their own name instead of the titleholder’s?
Yes. Section 8.01-12 gives the beneficial owner that option directly, rather than requiring the suit to proceed in the legal titleholder’s name.
What is a “chose in action” under this section?
It refers to a personal right to sue for and collect something — the kind of claim this section allows the beneficial equitable owner to pursue despite not holding legal title to it.
Amendment History
Code 1950, § 8-93.1; 1977, c. 617.
Source & verification. Section text and amendment history are
reproduced verbatim from the Code of Virginia, published by the
Code of Virginia, Virginia Division of Legislative Automated Systems. Last verified July 16, 2026.
· Official source
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