Also known as: without recourse
Written by attorneys · grounded in primary & secondary sources — see below
The absence of any legal avenue for obtaining reimbursement from or a judgment against a designated person or entity. This condition arises when a statute, contract, or court ruling expressly eliminates or withholds enforcement rights against the targeted party.
Northern Manufacturing's board authorizes a loan secured by all corporate equipment. The loan agreement dedicates the equipment to repayment whether with or without recourse. When the lender later seeks to collect from individual directors after default, the statute bars any such claim because the pledge was executed without recourse to those directors.
NCS Health Care's board adopts defensive measures that lock up a merger and prevent any competing bid from reaching a stockholder vote. Omnicare launches a hostile bid but the measures leave stockholders with no ability to exercise their franchise on the merits. The court holds that the board action leaves stockholders with no recourse to their voting rights.
Select any source to read its text and confirm it supports the definition.
MITE Corp. obtains a preliminary injunction halting a tender offer but posts no bond. After the injunction is dissolved, the target seeks damages from MITE. Because no bond was posted, the target has no recourse against any surety and must pursue only independent state-law claims.
Douglas is convicted and seeks to appeal but cannot afford counsel. California provides no appellate counsel for indigents. Douglas has no recourse against the state to compel appointment of counsel on direct appeal.
A creditor obtains a writ of replevin and seizes Fuentes's household goods without prior notice or hearing. Fuentes challenges the seizure. The statute authorizing ex parte replevin leaves her with no recourse against the creditor until after the property has already been taken.
Hamdi is held as an enemy combatant without access to counsel or any tribunal. He petitions for review of his detention. The government argues that the Authorization for Use of Military Force leaves him with no recourse in civilian courts to contest his status.
A drawer or indorser who adds 'without recourse' or equivalent language disclaims liability on a draft that is not a check or on an indorsement. The disclaimer is ineffective on a check. A transferor of an item under UCC Article 4 cannot disclaim the transfer warranty even with such language.
A general partner who pays an obligation created by a dissociated partner after dissolution may recover damages from the dissociated partner when the obligation was not appropriate for winding up. The paying partner is not left without recourse simply because the partnership has dissolved.
When a dissociated partner binds the partnership within two years by apparent authority and the third party reasonably believes the person remains a partner, the partnership may recover damages from that former partner. The partnership is not left without recourse against the person whose conduct created the obligation.
No shareholder approval is required for a corporation to mortgage or pledge assets with or without recourse, whether or not the transaction occurs in the usual course of business. The statute expressly authorizes such pledges without recourse and treats them as ordinary board actions.
…the beginning. If the answer of the Tennessee Court of Appeals to that question may not be challenged here, the petitioners have no recourse against Jafco on the bond." In this case it does not appear that MITE is liable on an injunction bond. The posting of an indemnity bond, however, merely creates a right of action—that may…