Definition - What does Collusive Lawsuit mean?
A collusive lawsuit is a lawsuit in which neither party is trying to sue each other. Instead, in a collusive lawsuit, the two or more parties get involved in the suit because they want the court to make a clear decision about a legal matter that involves each party in the collusive suit.
Justipedia explains Collusive Lawsuit
Collusive lawsuits often occur when it is advantageous for both parties to get an official ruling on something. For example, the owners of two adjoining properties may participate in a collusive lawsuit in order to find out where each party is allowed to put its trash dumpsters. In such a case, neither party would actually be seeking damages from the other one. Each party would merely want to know what its own legal obligations were in the situation.