Legal Definitions - priority

In legal terms, priority refers to the right or status of having precedence over others. It means that one claim, right, or obligation must be satisfied or recognized before others. This precedence can be established by law, by agreement, or by the order in which claims or rights were created.

Here are some examples illustrating the concept of priority:

• Example 1: Debt Collection Order

  Imagine an individual who owes money for federal student loans, credit card debt, and a personal loan. If a court orders a wage garnishment to collect outstanding debts, federal law often grants statutory priority to federal student loan debt. This means that a portion of the individual's wages would be directed towards paying the student loan first, before any funds could be allocated to the credit card or personal loan debts, even if those debts were incurred earlier. The student loan has a higher legal rank for repayment.

• Example 2: Water Rights Allocation

  In regions where water is a scarce resource, water rights are often allocated based on a "first in time, first in right" principle. If a cattle ranch established its water rights from a river in the late 1800s, and a new housing development secured its water rights from the same river in the 1990s, the ranch would have priority during a drought. This means the ranch is legally entitled to its full allocation of water before the newer housing development can draw its share, demonstrating that an earlier claim establishes precedence for resource access.

• Example 3: Estate Administration

  When a person passes away, their estate (all their assets and debts) must be managed, and debts paid, before any remaining assets can be distributed to heirs. Certain expenses, such as funeral costs and the administrative fees for the executor (the person managing the estate), are typically given priority by law. This means these essential expenses must be paid from the estate's funds before any general unsecured debts (like outstanding utility bills) or specific bequests to beneficiaries can be satisfied. The law ranks these necessary expenses higher to ensure the estate is properly closed and final arrangements are covered.