A more thorough explanation:

Definition: In pari delicto is a Latin phrase used in tort and contract law that means "in equal fault." It is a doctrine that states that a plaintiff cannot recover damages for a wrong they participated in and serves as an equitable defense. Courts are hesitant to award relief to plaintiffs who have unclean hands.

For example, if two people agree to commit a crime together and one of them gets injured during the crime, they cannot sue the other person for damages because they were both equally at fault.

If the parties in a lawsuit are found liable in pari delicto as joint tortfeasors, the potential remedies available to them are limited. Since both parties were equally responsible for committing a tort, indemnity is not available to them as a remedy. However, each party may seek contribution from the other, or if an involved party is vicariously liable for another and must pay more than their proportional share, they may seek contribution from that other party.

For example, if two companies collude to fix prices and are sued by customers for overcharging, they cannot seek indemnification from each other because they were both equally at fault. However, they can seek contribution from each other to pay for the damages awarded to the customers.

It is important to note that joint tortfeasors who are not in pari delicto may generally be entitled to indemnification from the other party. Also, if the tortfeasors in either scenario violated some equitable norm, then the clean-hands doctrine may further restrict the award of any equitable remedies.