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Wieburg v. GTE Southwest Inc.

The real party in interest is the person holding the substantive right sought to be enforced, and not necessarily the person who will ultimately benefit from the recovery.

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Appeal from the United States District Court for the Northern District of Texas

Joeline Wieburg was employed by GTE Southwest. She was fired. Soon, she filed for bankruptcy and her debts were discharged. She then returned to her earlier grievance and sued GTE for discriminatory discharge. She had not, however, disclosed this claim in her bankruptcy filings. On motion of GTE, the district court dismissed her complaint. The court held that she lacked standing because the claim was property of the bankruptcy estate; thus Harvey Morton, the Trustee, was the real party in interest. We agree that the Trustee is the real party in interest. We hold, however, that the district court abused its discretion by dismissing her complaint without explaining why ratification by, or joinder of, the Trustee were not appropriate alternatives. We therefore vacate the judgment as to GTE Southwest Incorporated, and remand the case to the district court for further proceedings. We affirm the dismissal of GTE Service Corporation.

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