Written by attorneys · grounded in primary & secondary sources — see below
3 senses
1
in civil procedure
Conduct by which a defendant takes advantage of the benefits and protections of a forum state's laws. The requirement ensures that jurisdiction arises only from the defendant's own purposeful contacts rather than from unilateral acts of others.
2
Sense 1
1
in civil procedure
Conduct by which a defendant takes advantage of the benefits and protections of a forum state's laws. The requirement ensures that jurisdiction arises only from the defendant's own purposeful contacts rather than from unilateral acts of others.
Examples1
No Jurisdiction Without Contacts
Aisha Ahmed a Delaware trustee never initiated any activity in Florida. The settlor's unilateral exercise of a power of appointment in Florida could not supply the purposeful contacts needed for personal jurisdiction over the trustee.
Frequently Asked
Sense 2
2
in property and insurance law
Proceeds or benefits obtained from a sale of property or from an insurance policy. These sums are treated as substitutes for the underlying asset and are subject to the same claims or exemptions that would have applied to the original property.
Examples2
Derivative Recovery Belongs to Company
Ava Adebayo brought a successful derivative suit on behalf of Apex Dynamics. The settlement proceeds were paid directly to the LLC rather than to Ava because any recovery in a derivative action belongs to the entity.
Property Remains Individual After Exchange
Alan Ackerman used proceeds from the sale of his premarital stock to buy a vacation cabin after marriage. Because the cabin was acquired in exchange for individual property it retained its character as Alan's separate asset under the uniform act.
Sense 3
3
general
Usefulness or benefit derived from a thing or action. The concept measures whether a particular step produces any practical advantage in achieving a desired legal result.
Examples3
Buyer Bears Risk After Contract
Arthur Abrams signed a contract to purchase a warehouse from Apollo Energy. Before closing a fire destroyed the building. Under the majority rule the risk had already shifted to Arthur so he remained obligated to pay the full price while Apollo held title only as trustee.
Noncompete Violates Ethics Rule
Aether Technologies and its departing associate Albert Allen negotiated a separation agreement that barred Allen from practicing in three counties. The clause restricted the lawyer's right to practice after termination and therefore violated the ethics prohibition on such agreements.
Proceeds or benefits obtained from a sale of property or from an insurance policy. These sums are treated as substitutes for the underlying asset and are subject to the same claims or exemptions that would have applied to the original property.
3
general
Usefulness or benefit derived from a thing or action. The concept measures whether a particular step produces any practical advantage in achieving a desired legal result.
Each sense below has its own examples, sources, and questions.
1
What must a defendant do to purposefully avail itself of a forum state?+
The defendant must perform some act by which it takes advantage of the privilege of conducting activities within the state thereby invoking the benefits and protections of its laws. Unilateral activity by the plaintiff or a third party is insufficient.
Frequently Asked1
Who receives the proceeds of a successful derivative action?+
Any proceeds belong to the limited liability company itself. The plaintiff must immediately remit any recovery received to the company.
Ambiguous Term Construed Against Drafter
Amber Alonzo's form contract contained an ambiguous delivery clause that she had drafted. When a dispute arose the court adopted the reading that operated against Amber because the law prefers an interpretation that works against the party who supplied the words.
Frequently Asked2
When does risk of loss pass to a buyer under equitable conversion?+
Under the majority rule risk passes to the buyer at contract formation. The buyer therefore bears any loss even though the seller still holds legal title as trustee.
How does the contra proferentem rule affect ambiguous contract language?+
The court selects the meaning that operates against the party who supplied the words. This rule resolves genuine ambiguity in favor of the nondrafting party.
576 U.S. 644 (2015)Legislation and Regulation
…between same- and opposite-sex couples with respect to this principle, yet same-sex couples are denied the constellation of benefits that the States have linked to marriage and are consigned to an instability many opposite-sex couples would find intolerable. It is demeaning to lock same-sex couples out of a central…