Also known as: holders · holder in due course
Written by attorneys · grounded in primary & secondary sources — see below
A person who has legal possession or control of a negotiable instrument, document, privilege, servitude, power, lien, or other property interest and is entitled to enforce or exercise the associated rights.
Hugo Hart defaulted on payments secured by a mortgage on his home. Helix Biotech, which held the promissory note after assignment, filed a foreclosure action. The court recognized Helix Biotech as the proper plaintiff because it was the holder of the note and joined Hugo Hart as the mortgagor to ensure the proceeding could extinguish all interests.
Hannah Hughes inadvertently produced privileged emails during discovery in a contract dispute. Hudson Partners, as holder of the attorney-client privilege, had implemented screening protocols before production. The court found no waiver because the holder had taken reasonable steps to prevent disclosure.
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Hammer Construction held an easement across Harper Hill's land for a utility line. Harper Hill, as holder of the servient estate, had no duty to repair the line because the beneficiary controlled the improvement. When joint use arose, both parties shared maintenance costs proportionally.
Hiroshi Hasegawa created a power of appointment in his will naming his daughter as donee. The daughter, as power holder, could appoint the property to permissible objects listed in the instrument. Upon her exercise of the power, title passed directly to the appointees without further action by the estate.
Hana Huang's law firm accidentally sent a privileged memo to opposing counsel. As holder of the privilege, Hana Huang immediately notified the recipient and demanded return of the document under Rule 26(b)(5)(B). The court held the prompt action preserved the protection against waiver.
Holly Hayes and her spouse owned property as tenants by the entirety. The IRS assessed a tax lien against Holly Hayes individually. The government, as holder of the lien, could reach only her survivorship interest and could not force sale of the entire property without joining her spouse.
The mortgagee or the person in possession of the note after proper negotiation is the holder. That status allows the holder to initiate foreclosure and join the mortgagor and junior lienholders as necessary parties. Failure to join required parties can impair the sale's validity under state statutes.
The holder must have taken reasonable preventive measures before disclosure and must act promptly to rectify the error, including following Rule 26(b)(5)(B) when applicable. These actions prevent the disclosure from operating as a waiver in federal or state proceedings.
The holder of the servient estate generally has no affirmative duty to repair or maintain the servient estate or improvements used by the easement beneficiary. Joint use of improvements creates a contribution obligation for reasonable repair costs among all users.
…on his part to be done, or commits waste, his right to redeem from said sale shall terminate 30 days after such default and holders of subsequent liens may redeem in the order and manner now provided by law beginning 30 days after the filing of notice of such default with the clerk of such District Court, and his right…