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LSDefine

Simple English definitions for legal terms

contribution bar

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A quick definition of contribution bar:

A contribution bar is a rule that prevents a defendant from seeking compensation from other defendants who have already settled their dispute with the plaintiff. This is usually done in exchange for a credit against any judgment the plaintiff may obtain against the non-settling defendant. In simpler terms, if some defendants have already resolved their issues with the plaintiff, the remaining defendant cannot ask them for money to help pay for any damages or penalties.

A more thorough explanation:

A contribution bar is a legal term that refers to the preclusion of a defendant from seeking contribution from other defendants who have already settled their dispute with the plaintiff. This bar is usually allowed in exchange for a credit against any judgment the plaintiff obtains against the non-settling defendant.

Suppose there is a lawsuit involving three defendants, A, B, and C, and a plaintiff. If A and B settle with the plaintiff, then C cannot seek contribution from A and B. However, C may still be liable for damages if the plaintiff obtains a judgment against them.

This contribution bar is designed to encourage settlements and avoid prolonged litigation. It ensures that defendants who settle with the plaintiff are not later sued for contribution by other defendants.

contribution agreement | contribution clause

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