Legal Definitions - aggregate

Aggregate refers to the total sum, collection, or whole formed by combining several separate items, amounts, or entities. It can describe the combined total (as an adjective), the collection itself (as a noun), or the act of bringing them together (as a verb).

• Example 1: Class-Action Lawsuit

  Imagine a situation where hundreds of customers have each been overcharged a small amount by a large utility company. Individually, the cost of suing for a few dollars might not be worth it for any single customer. However, a law firm might decide to aggregate these individual claims, combining them into a single class-action lawsuit. In this scenario, the lawsuit represents the aggregate of all the small, individual overcharges, allowing the customers to collectively seek a larger, more impactful remedy.

• Example 2: Insurance Policy Limits

  Many business liability insurance policies include an "aggregate limit." For instance, a policy might have an aggregate limit of $2,000,000 per policy period. This means that regardless of how many separate claims are filed against the business during that period, the insurance company will not pay out more than a total combined amount of $2,000,000 across all those claims. It sets a maximum total payout for all covered losses within the specified timeframe.

• Example 3: Environmental Impact Assessment

  When a large development project, such as building a new industrial park, is proposed, environmental regulations often require an assessment of its aggregate impact. This means evaluating not just the effect of one specific component (like a new factory building) but the total combined effect of all aspects of the project, including increased traffic, wastewater discharge from multiple facilities, air emissions from various sources, and habitat loss across the entire site. The assessment considers the overall, cumulative environmental burden rather than isolated impacts.