In pari delicto

3 key takeaways

• In pari delicto is a defense in legal cases where both parties are equally at fault or have engaged in the same illegal activity.
• The doctrine aims to prevent courts from resolving disputes between wrongdoers, essentially leaving them as they are found.
• This principle can be invoked in various cases, including contract disputes, tort claims, and securities fraud.

What is in pari delicto?

In pari delicto is a Latin phrase that translates to “in equal fault.” It is a legal doctrine used as a defense to bar a plaintiff from recovering damages when both the plaintiff and the defendant are equally responsible for the illegal or unethical conduct in question. The rationale behind this doctrine is that the courts should not help a wrongdoer benefit from their own misconduct.

This doctrine is rooted in the principle that courts should not intervene to resolve disputes between parties who are both engaged in wrongful conduct. Instead, the courts leave the parties as they find them, denying relief to the plaintiff if their fault is equal to or greater than the defendant’s.

Examples of in pari delicto

Contract Disputes: If two parties enter into a contract that involves illegal activities, such as a contract for the sale of illegal drugs, and one party sues the other for breach of contract, the court may invoke in pari delicto to dismiss the case, as both parties are equally engaged in illegal conduct.

Securities Fraud: In cases of securities fraud where both the plaintiff and defendant have participated in fraudulent schemes, the doctrine can be used to prevent the plaintiff from recovering damages, as both are equally culpable.

Tort Claims: In a tort claim where both parties have engaged in negligent or wrongful behavior, such as a case where two drivers involved in a car accident were both driving under the influence, the court may apply in pari delicto to bar the plaintiff from recovering damages.

Application and limitations

Application: The in pari delicto doctrine is typically applied in civil cases where both parties are shown to have engaged in illegal or unethical behavior. The defendant must prove that the plaintiff’s fault is at least equal to their own for the defense to be successful.

Limitations: There are limitations to the doctrine’s application. For instance, if one party is significantly more at fault than the other, the court may not apply in pari delicto. Additionally, the doctrine may not apply if the plaintiff was coerced or misled into engaging in the wrongful conduct.

Public Policy Considerations: Courts also consider public policy implications when applying in pari delicto. If applying the doctrine would undermine important public policy objectives, such as deterring fraud or protecting consumers, the court may choose not to apply it.

Impact of in pari delicto

The impact of the in pari delicto doctrine is significant in that it can prevent plaintiffs from recovering damages, even if they have suffered losses, if they are found to be equally at fault. This doctrine serves to discourage wrongful conduct by ensuring that wrongdoers cannot seek judicial relief for their own misconduct.

Related topics

• Clean hands doctrine
• Contributory negligence
• Comparative fault
• Unclean hands

Explore these related topics to gain a deeper understanding of legal defenses and principles that address the conduct of parties in legal disputes, particularly those involving wrongful or unethical behavior.