Legal Definitions - Mother Hubbard clause

The term Mother Hubbard clause refers to different types of provisions or statements found in legal documents, each serving a distinct purpose. It generally acts as a broad, catch-all provision designed to prevent omissions or ensure comprehensive coverage.

• In the context of mortgages and debt: A Mother Hubbard clause is a provision in a mortgage agreement stating that the property being mortgaged secures not only the specific loan for which the mortgage was initially taken out but also all other debts that the borrower currently owes or may owe in the future to the same lender. This means the property can be used to satisfy any outstanding financial obligations to that lender, even if those obligations arise from separate agreements.

  • Example 1: Sarah takes out a mortgage with "First National Bank" to buy her home. The mortgage agreement includes a Mother Hubbard clause. A year later, she takes out a separate personal loan from "First National Bank" to consolidate credit card debt. If Sarah defaults on the personal loan, the Mother Hubbard clause means that her home, originally mortgaged for the purchase, could potentially be used by First National Bank to recover the outstanding balance of the personal loan as well.

  • Example 2: A small business, "Innovate Tech Solutions," obtains a loan from "City Bank" to purchase new office equipment, securing the loan with a mortgage on its commercial building. The mortgage document contains a Mother Hubbard clause. Later, Innovate Tech Solutions secures a line of credit from "City Bank" for operational expenses. If the business fails to repay the line of credit, the commercial building, due to the Mother Hubbard clause, would secure both the original equipment loan and the subsequent line of credit.

• In the context of oil and gas leases: A Mother Hubbard clause is a provision in an oil and gas lease designed to protect the lessee (the company exploring for oil and gas) against minor errors or omissions in the legal description of the leased property. It states that the lease covers all land owned by the lessor (the landowner) in a particular area, even if the description in the lease is slightly inaccurate or incomplete.

  • Example 1: A rancher leases a large tract of land to an oil company for drilling. The lease document provides a detailed legal description of the property. However, due to an old survey error, a small, irregularly shaped parcel of land adjacent to the main tract, which the rancher also owns, is inadvertently omitted from the description. A Mother Hubbard clause in the lease would ensure that the oil company's rights extend to this small, omitted parcel, preventing future disputes over its ownership for drilling purposes.

  • Example 2: A landowner signs an oil and gas lease for their 160-acre farm. The lease description specifies the boundaries, but a subsequent, more precise survey reveals the farm is actually 162 acres. The Mother Hubbard clause in the original lease would automatically extend the lease to cover the full 162 acres owned by the lessor in that area, ensuring the oil company has rights to the entire property without needing to amend the lease for a minor acreage difference.

• In the context of court judgments: A Mother Hubbard clause is a statement included in a court's written order or judgment that explicitly denies any requests for relief, remedies, or actions that were brought before the court but not specifically granted in the judgment. It serves as a catch-all to ensure finality and clarity regarding all issues presented in the case.

  • Example 1: In a complex business lawsuit, a plaintiff asks the court for several forms of relief, including monetary damages, an injunction to stop certain business practices, and specific performance of a contract. The court's final judgment awards the plaintiff monetary damages and issues the injunction, but it does not mention specific performance. A Mother Hubbard clause in the judgment would explicitly state that "all other relief not expressly granted herein is denied," thereby confirming that the request for specific performance was rejected.

  • Example 2: During a contentious divorce proceeding, one spouse requests primary custody of the children, exclusive use of the marital home, and reimbursement for legal fees. The court grants primary custody to that spouse and orders the sale of the marital home, but does not address the request for legal fees. A Mother Hubbard clause in the final divorce decree would clarify that the request for legal fees, not being explicitly granted, is denied, bringing finality to all claims made during the proceedings.