The doctrine prevents a party equally at fault from recovering. Exceptions apply where the plaintiff is less culpable, where public policy favors recovery, and where the adverse interest exception applies to corporate agents.
It is an affirmative defense.
Alternative Names:
In Equal Fault|Equal Wrongdoing Doctrine
Why it Matters?
The adverse interest exception is the recurring battleground in claims against professionals by corporations whose own officers participated in the wrongdoing, since agent misconduct is imputed to the entity unless the agent totally abandoned the principal's interests. That total abandonment standard is demanding and defeats most attempts to avoid imputation. Bankruptcy trustees standing in the debtor's shoes face the same defense.
Frequently Confused with
Related terms
Frequently asked questions
What is the adverse interest exception?
Why does it rarely succeed?
