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Definition of Friendly suit
1. Noun. (legal) : Where two subsidiaries of the same parent company accidentally sue each other, not realising that they have the same owner. An analogy is "friendly fire", where a person accidentally shoots someone on his or her own side. ¹
2. Noun. (legal) : Where a person sues another person (friend) purely to settle a point of (unsettled) law. ¹
¹ Source: wiktionary.com