- Joint and several liability
Where two or more persons are liable in respect of the same liability, in most
common lawlegal systems they may either be:
* jointly liable, or
* severally liable, or
* jointly and severally liable.
If parties have joint liability, then they are each liable up to the full amount of the relevant
obligation. So if a husband and wife take out a loanfrom a bank, the loan agreementwill normally provide that they are to be "jointly liable" for the full amount. If one party dies, disappears or is declared bankrupt, the other remains fully liable. Accordingly, the bank can sue one, or other, or both, for the full amount. However, in suing, the creditoronly has one course of action, i.e., the creditor can only sue for each debt once. If, for example, there are three partners, and the creditor only sues two of them for the outstanding loan amount and cannot recover the full amount, he cannot recover the remaining amount from the partner who is left out of the lawsuit.
The converse is several liability, where the parties are liable for only their respective obligations. A common example of several liability is in
syndicated loanagreements, which will normally provide that each bank is severally liable for its own part of the loan. If one bank fails to advance its agreed part of the loan to the borrower, then the borrower can only sue that bank, and the other banks in the syndicatehave no liability.
Joint and several liability
Under joint and several liability, a claimant may pursue an obligation against any one party as if they were jointly liable and it becomes the responsibility of the defendants to sort out their respective proportions of liability and payment. This means that if the claimant pursues one defendant and receives payment, that defendant must then pursue the other obligors for a contribution to their share of the liability.
Joint and several liability is most relevant in
tortclaims, whereby a plaintiffmay recover all the damagesfrom any of the defendants regardless of their individual share of the liability. The rule is often applied in negligencecases, though it is sometimes invoked in other areas of law.
United States, 46 of the 50 states have a rule of joint and several liability, although in response to " tort reform" efforts, some have limited the applicability of the rule.
If Ann is struck by a car driven by Bob, who was served in Charlotte's bar (and the state has
dramshoplaws), then both Bob and Charlotte may be held jointly liable for Ann's injuries. The jurydetermines Ann should be awarded $10 million and that Bob was 90% at fault and Charlotte 10% at fault.
*Under proportionate liability, Bob would have to pay $9M and Charlotte would have to pay $1M. If Bob does not have any money, Ann only gets the $1M from Charlotte.
*Under joint and several liability, Ann may recover the full damages from "either" of the defendants. If Ann sued Charlotte alone, Charlotte would have to pay the full $10M despite only being at fault for $1M. Charlotte would then either have to join Bob as defendant in Ann's suit against her or would have to pursue a separate action against Bob for $9M. Regardless of the outcome of that action, Charlotte would remain liable to Ann for the full $10M.
Criticisms of joint and several liability
Joint and several liability is premised on the theory that the defendants are in the best position to apportion damages amongst themselves. Once liability has been established and damages awarded, the defendants are free to
litigateamongst themselves to better divide liability. The plaintiff no longer needs to be involved in the litigation and can avoid the cost of continuing litigation.
Defenders of the principle of joint and several liability further argue that it protects victims from being undercompensated if one of the defendants can not pay his or her share of proportionate liability.
Opponents of the principle of joint and several liability note that its use (instead of proportionate responsibility) has led to cases in which a party with a very minor part of the responsibility unfairly shoulders the burden of damages. The classic example is the uninsured drunk driver who injures someone; the plaintiff will sue both the insolvent drunk driver and the state highway department (or automobile manufacturer), hoping to hold the latter 1% or 2% responsible yet forcing them to pay the entire award. Joint and several liability, reform supporters argue, leads to lawyers searching for "deep pockets" to sue (in the expectation that they will settle rather than risk trial), even though those defendants may only be remotely related to an incident.
According to Richard Wehe, Assistant Chief Counsel at the California Department of Transportation, (
Caltrans), "I can tell you that in many, many settlement conferences or mediations I am confronted with plaintiff's lawyer's statements that, 'I only need to establish that the state is 1 % at fault and I can recover all of my economic damages.'" [http://cpr.ca.gov/report/cprrpt/issrec/gg/eff/gg37.htm#10b]
Where a financially wealthy defendant can be joined as a defendant, a plaintiff has a greater chance of recovering damages than when the defendants are financially insolvent, or
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* [http://legalwikipro.com/wiki/index.php?title=Contribution_(OK) LegalWikiPro Contribution Between Joint Tortfeasors Law outline for State of Oklahoma]
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Look at other dictionaries:
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joint and several liability — The liability of more than one person for which each person may be sued for the entire amount of the damages. (Dictionary of Canadian Bankruptcy Terms) United Glossary of Bankruptcy Terms 2012 … Glossary of Bankruptcy
joint and several liability — (law) The responsibility of any one member of a group for the actions or debts of any or all of the others, and the responsibility of the group as a whole for the actions or debts of any one member • • • Main Entry: ↑join … Useful english dictionary
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joint and several liability — The liability of joint tortfeasors. 52 Am J1st Torts § 110. The liability of the two or more contracting parties on one side under an agreement in such terms as to engage the two or more jointly and each one individually. See joint and several… … Ballentine's law dictionary
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joint and several liability — A liability that is entered into by a group, on the understanding that if any of the group fail in their undertaking the liability must be shared by the remainder. Thus, if two people enter into a joint and several guarantee for a bank loan, if… … Accounting dictionary
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