Contribution permits recovery among joint tortfeasors where one has paid more than its proportionate share. Availability depends on statute, and settling parties are frequently protected from contribution claims.
It differs from indemnity, which shifts the entire loss.
Alternative Names:
Right of Contribution, Contribution Claim
Why it Matters?
Good faith settlement determinations extinguish contribution claims in many states, which means a codefendant that settles early may leave the remaining defendant unable to recover any share from it. That makes monitoring codefendant settlement activity and appearing at good faith hearings important. In pure several liability states contribution is largely unnecessary since each defendant pays only its allocated share.
Frequently Confused with
Related terms
Frequently asked questions
How does contribution differ from indemnity?
What extinguishes contribution rights?
