A Mary Carter agreement refers to a confidential contract entered into by certain defendants in a lawsuit and the plaintiff. Under this agreement, the participating defendants resolve their claims with the plaintiff and are no longer part of the lawsuit. However, they are entitled to receive a share of any monetary damages obtained from the nonparticipating defendants. In the event that no money is recovered from the nonparticipating defendants, the participating defendants agree to remain in the lawsuit and pay the plaintiff a predetermined amount. While some states view this agreement as contrary to public policy, others permit its use as long as it is disclosed to the jury.
A Mary Carter agreement is a confidential contract between one or more defendants and a plaintiff in a lawsuit. This agreement enables the defendants to settle with the plaintiff and be released from the lawsuit, while remaining a defendant. In return, they receive a share of any compensation obtained from the nonparticipating defendants. For instance, in a personal injury case involving a car accident, one of the drivers may enter into a Mary Carter agreement with the injured party. The driver agrees to pay a specific amount to the injured party and continues to be a defendant in the lawsuit. If the injured party wins the case and receives a settlement from the other driver, the participating driver will receive a portion of that settlement. However, it is important to note that Mary Carter agreements are not universally recognized as legal. Some states consider them to be against public policy and therefore invalid. In other states, they are permitted but must be disclosed to the jury. Overall, Mary Carter agreements can be a contentious strategy employed in legal cases to shift liability and potentially influence the outcome of a lawsuit.
A Mary Carter Agreement is a type of settlement agreement in which one or more defendants in a lawsuit agree to limit their liability and financial exposure in exchange for assisting the plaintiff in obtaining a favorable outcome against the remaining defendants.
In a Mary Carter Agreement, the defendant(s) who enter into the agreement typically remain as named defendants in the lawsuit, but their liability is reduced or capped. They may also agree to provide financial assistance or other support to the plaintiff during the litigation process.
Yes, Mary Carter Agreements are generally considered legal, although their enforceability may vary depending on the jurisdiction and specific circumstances of the case.
Typically, a Mary Carter Agreement only affects the parties who have entered into the agreement. It does not automatically bind non-participating defendants, although it may have an impact on the overall dynamics of the case.
Yes, a plaintiff can potentially enter into multiple Mary Carter Agreements with different defendants in a lawsuit. However, the terms and conditions of each agreement may need to be carefully negotiated to avoid conflicts or inconsistencies.
The admissibility of a Mary Carter Agreement as evidence in court varies depending on the jurisdiction. In some cases, the agreement may be admissible to show bias or potential conflicts of interest, while in others, it may be excluded to prevent prejudice.
Yes, a Mary Carter Agreement can be challenged or invalidated if it is found to be fraudulent, coercive, or against public policy. It is important to consult with an attorney to assess the validity and enforceability of such agreements.
Mary Carter Agreements are most commonly used in personal injury and product liability cases, but they can potentially be utilized in other types of civil litigation as well.
Entering into a Mary Carter Agreement may involve certain risks, such as potential conflicts of interest, challenges to enforceability, or negative perceptions by the jury. It is crucial to consult with an experienced attorney to evaluate the potential risks and benefits in your specific case.
A Mary Carter Agreement can potentially be modified or terminated if all parties involved agree to the changes. However, any modifications or terminations should be properly documented and approved by the court to ensure their validity.
This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.
This glossary post was last updated: 17th April 2024.
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