Also known as:arise out of · arising out of · arisen out of · arising from
Written by attorneys · grounded in primary & secondary sources — see below
A connection or causal link between a claim, liability, or obligation and a particular transaction, occurrence, or conduct. The link determines whether procedural rules require joinder of claims, whether jurisdiction exists over a defendant, or whether a defense such as assumption of risk applies.
Sources & Authorities
How it applies
Common Examples
6
Counterclaim in Contract Dispute
Adam Anderson sued Astra Aerospace for unpaid invoices on a supply contract. Astra answered and asserted a counterclaim alleging that Anderson had delivered defective parts that caused production delays on the same project. Because the counterclaim arose out of the identical transaction that formed the subject matter of Anderson's complaint, the court held it compulsory under the governing rule.
Shareholder Liability Shield
Alfred Ashford purchased shares in Alpine Mining. When the corporation later incurred environmental cleanup costs, creditors attempted to hold Ashford personally liable. The court rejected the attempt because the shareholder's liability did not arise out of any act that removed the statutory protection for corporate obligations.
Select any source to read its text and confirm it supports the definition.
Cases
Statutes
Federal Rules
Uniform Acts
Model Codes
Restatements
Conflict Check After Lateral Move
Ava Adebayo left one firm and joined another. To identify potential conflicts arising out of her prior representations, the new firm reviewed limited information about matters she had handled at her former employer. The disclosure was permitted because it was made solely to detect conflicts and did not compromise any privilege.
Apparent Authority in Sale
Andre Antoine, a sales representative, showed a third party a letter from Anchor Bank authorizing him to negotiate equipment leases. Relying on that letter, the third party entered a lease with Antoine. The bank was bound because the third party's belief in Antoine's authority arose out of the bank's own manifestations.
Assumption of Risk Defense
Arthur Abrams signed a waiver before joining a guided rock-climbing excursion. During the climb he fell and was injured when the guide's equipment failed. Because the injury arose out of a risk that Abrams had voluntarily assumed, the guide could not be held liable for negligence.
Double Jeopardy Bar
Alexandra Armstrong was tried and convicted of misdemeanor assault. Prosecutors later charged her with aggravated assault arising out of the identical altercation. The court dismissed the greater charge because jeopardy had already attached to the lesser offense that arose out of the same conduct.
Common questions
Frequently Asked
3
When does a claim arise out of the same transaction or occurrence for purposes of compulsory counterclaims?+
A claim arises out of the same transaction or occurrence when it shares a logical relationship with the opposing party's claim such that separate trials would involve duplication of effort. Courts examine whether the claims involve the same evidence, witnesses, or operative facts.
Supporting sources
How does the arises-out-of element affect specific personal jurisdiction?+
The claim must arise out of or relate to the defendant's contacts with the forum. A single deliberate contact such as maintaining an insurance policy can support jurisdiction when the suit stems directly from that contact.
Supporting sources
Does assumption of risk require that the harm arise out of the defendant's conduct?+
Yes. The plaintiff must have voluntarily assumed a risk of harm arising from the defendant's negligent or reckless conduct. If the risk is unrelated to that conduct, the defense does not apply.
Supporting sources
326 U.S. 310 (1945)Civil Procedure
…there are sufficient to render the corporation amenable to suit brought in the courts of the state to enforce an obligation arising out of its activities there. International Harvester Co. v. Kentucky , 234 U. S. 579, 587; People’s Tobacco Co. v. American Tobacco Co. , 246 U. S. 79, 87; Frene v. Louisville Cement Co. , 77…