Joint and several liability is a legal term referring to the collective responsibility shared by two or more parties in a lawsuit. A wronged party can sue any or all involved, collecting the total damages awarded by a court from any or all of the defendants. This ensures that the plaintiff is compensated even if one party cannot fulfill their financial obligation, thereby sharing the responsibility for the total amount amongst all implicated parties.
If any party fails to pay, the obligation increases for the others. Here’s what you need to know about joint and several liability, and how it operates in different legal systems.
Key Takeaways
- Collective Responsibility: Joint and several liability ensures all parties in a suit are responsible for the damages awarded. Each must pay the total amount if others cannot.
- Deep Pocket Rule: Plaintiffs may collect full payment from the party most capable of paying if others named are unable to meet their share.
- Equivalent in Contracts: The term “jointly and severally liable” in contracts indicates the same shared responsibility.
- Comparative Fault Laws: These laws often limit financial responsibilities to a proportion based on the extent of individual fault.
How Joint and Several Liability Works
Joint and several liability is particularly advantageous for plaintiffs as it allows them to pursue full payment from the defendant with the deepest pockets. This ensures significant damages can be collected, despite other parties’ insolvency or lack of insurance.
Unlike comparative fault, where responsibility for damages is proportional based on the degree of fault, joint and several liability doesn’t restrict collection to the party primarily at fault.
Most states in the U.S. have limited the application of joint and several liability, often adopting a hybrid approach. For example, joint and several liability might only apply when a party is found responsible for more than 50% of the damage.
Reform Efforts
These reforms aim to prevent plaintiffs from unfairly targeting a single, wealthy defendant, such as a large corporation, to secure a higher compensation.
Criticism of Joint and Several Liability
While joint and several liability benefits plaintiffs by maximizing the chance of collecting awarded damages, critics argue it can unfairly burden a party with minor responsibility for the damages suffered. Simply put, a smaller player might end up paying an oversized share due to the inability of others to pay.
Inspirational Example of a Joint and Several Liability Case
Imagine workers who fell ill after employment at various job sites containing harmful materials. These construction workers might develop health issues linked to toxic substances in materials used across these sites. They could collectively sue several employers responsible for inadequate safety measures.
In this situation, joint and several liability enables pursuing damages from any or all employers, ensuring victims receive due compensation even if some employers are unable to pay their full share.
Quick FAQs
What Does It Mean to Be Jointly and Severally Liable?
Being jointly and severally liable means all parties involved in a lawsuit are responsible for the awarded damages up to the entire amount. If any party cannot pay their share, others must cover the deficiency.
What Is Several but Not Joint Liability?
Several liability, or proportionate liability, means each party is only responsible for their portion of the obligations. It contrasts with joint liability, where every party can be held accountable for the entire amount.
What Is the Purpose of Joint and Several Liability?
The primary purpose of joint and several liability is to mitigate financial risks for plaintiffs. It allows them to seek full compensation from the most financially capable party if others fail to contribute adequately.
The Final Thought
Joint and several liability ensures all parties in a lawsuit bear responsibility for the entire amount of damages awarded. If one party cannot fulfill their financial obligation, the others must cover the deficit, ensuring fair risk distribution and effective compensation for plaintiffs.
By understanding joint and several liability, one can appreciate its role in safeguarding claimants’ rights while acknowledging the need for balanced legal reforms.
Related Terms: joint liability, several liability, comparative fault, corporation, insolvency.
