Legal Definitions - locuples

Locuples

In legal contexts, particularly within civil law systems, locuples describes a person or entity that possesses sufficient financial resources to pay any monetary judgment or damages that a court might order them to pay to an opposing party. Essentially, it refers to someone who is financially capable of satisfying a potential legal debt or liability.

• Example 1: Individual Defendant in a Civil Suit

  Imagine a prominent real estate developer with a net worth in the hundreds of millions of dollars is sued for alleged negligence in a construction project. If the plaintiffs win their case and are awarded $10 million in damages, the developer would be considered locuples because their extensive personal and business assets ensure they have the means to pay that amount without significant financial strain.

• Example 2: Large Corporation Facing a Class Action Lawsuit

  Consider a multinational technology company with billions in annual revenue and substantial cash reserves that is facing a class action lawsuit over a data breach. Should the court rule against the company and order it to pay hundreds of millions in compensation to affected customers, the company would be deemed locuples. Its vast financial strength means it can readily cover such a judgment, ensuring the plaintiffs can recover their awarded damages.

• Example 3: Guarantor for a Business Loan

  A small startup seeks a significant bank loan, but due to its limited operating history, the bank requires a personal guarantor. A wealthy investor, known for their substantial portfolio of stocks, bonds, and real estate, agrees to guarantee the loan. In this scenario, the investor is locuples because their considerable personal assets provide the bank with assurance that if the startup defaults, there are ample means to recover the outstanding loan amount from the guarantor.