Adverse Explained

Adverse or adverse interest, in law, is anything that functions contrary to a party's interest.[1]

This word should not be confused with averse.

The most common use of the term is "an interest, claim, or right that is against another’s interest." This occurs not only in the law; examples also pop up in accounting.[2] Furthermore, an adverse interest is an exception to agency law.[3] The law regarding this exception is narrowly defined, so a judge will instruct a trial jury on the specific law.[4]

A second use of the phrase is when some "witness with adverse interest means the witness is hostile. A hostile witness wants different results of the lawsuit than the party who calls them."

Adverse possession

A third use of the word "adverse" is "In real property, adverse interest means a person who is not the owner of the land or house owns an interest in the property."

In property law, adverse possession refers to an interest in real property which is contrary to the in-fact owner of the property. For example, an easement may permit some amount of access to property which might otherwise constitute a trespass.

See also

Notes and References

  1. Web site: adverse interest. Cornell Law School Legal Information Institute . June 1, 2022. March 12, 2025.
  2. Web site: What are some examples of the adverse interest threat?. Universal CPA Review. 2022. March 12, 2025.
  3. Web site: Imputation, the Adverse Interest Exception, and the Curious Case of the Restatement (Third) of Agency. Mark J.. Loewenstein. 84 . U. Colo. L. Rev.. 305 . 2013. March 12, 2025.
  4. Web site: Manual of Model Civil Jury Instructions › 4. Agency: 4.13 Adverse Interest Exception. United States Court of Appeals for the Ninth Circuit . March 12, 2025.