Legal Definitions - Several liability

Several liability is a legal principle applied in civil lawsuits, particularly those involving negligence or harm (known as torts), where multiple parties are found responsible for causing damages. Under a system of several liability, each responsible party is held accountable only for their specific, determined share of the total damages, and no more. This means that if one party is unable to pay their portion, the other responsible parties are not required to cover that shortfall. The plaintiff (the person who suffered harm) can only recover from each defendant the percentage of damages for which that defendant was found responsible.

This approach differs from joint-and-several liability, where each defendant could potentially be held responsible for the entire amount of damages, even if their individual share of fault was small, if other defendants are unable to pay their portions.

• Example 1: Construction Site Accident

  Imagine a scenario where a construction worker is seriously injured on a building site. An investigation reveals that the accident was caused by a combination of factors: a defective piece of scaffolding supplied by Equipment Rental Co. and inadequate safety training provided by the primary contractor, BuildRight Construction. A jury determines the total damages to be $750,000.

  The jury assigns 30% of the fault to Equipment Rental Co. and 70% of the fault to BuildRight Construction. Under several liability:

  • Equipment Rental Co. is liable for 30% of $750,000, which is $225,000.
  • BuildRight Construction is liable for 70% of $750,000, which is $525,000.

  If BuildRight Construction later declares bankruptcy and cannot pay its $525,000 share, Equipment Rental Co. is still only obligated to pay its $225,000. The injured worker would not be able to recover BuildRight Construction's unpaid portion from Equipment Rental Co., illustrating that each party is only responsible for their "several" or individual share.

• Example 2: Multi-Party Software Failure

  Consider a large corporation that experiences significant financial losses totaling $2,000,000 due to a critical software system failure. An independent audit reveals that the failure was partly due to faulty code developed by Software Solutions Inc. and partly due to improper implementation and maintenance by IT Services Group. The audit assigns 60% of the responsibility to Software Solutions Inc. and 40% to IT Services Group.

  Under several liability:

  • Software Solutions Inc. is liable for 60% of $2,000,000, which is $1,200,000.
  • IT Services Group is liable for 40% of $2,000,000, which is $800,000.

  If Software Solutions Inc. is a small startup and goes out of business, unable to pay its $1,200,000 share, IT Services Group is still only responsible for its $800,000. The corporation would have to absorb the $1,200,000 loss from Software Solutions Inc., as IT Services Group is not required to cover the other party's unpaid portion.

• Example 3: Environmental Damage from Multiple Sources

  A local community suffers from widespread environmental damage, including contaminated soil and groundwater, traced back to pollutants from two different industrial facilities: Chemical Works A and Manufacturing Plant B. The total cost for cleanup and remediation is estimated at $10,000,000. Environmental experts determine that Chemical Works A contributed 70% of the harmful substances, while Manufacturing Plant B contributed 30%.

  Under several liability:

  • Chemical Works A is liable for 70% of $10,000,000, which is $7,000,000.
  • Manufacturing Plant B is liable for 30% of $10,000,000, which is $3,000,000.

  Should Chemical Works A face severe financial difficulties and only be able to pay $2,000,000 of its $7,000,000 share, Manufacturing Plant B would still only be responsible for its $3,000,000. The community would then be left to find alternative funding or bear the remaining $5,000,000 shortfall from Chemical Works A, as Manufacturing Plant B's liability is strictly limited to its determined percentage of fault.