# Joint and Several Liability Explained: Definition, Examples, State Restrictions

![Joint and Several Liability: When multiple people or companies are responsible for damaging or harming someone.](https://www.investopedia.com/thmb/TW29Lq6EkwcNcjKrX62IMbiPLjg=/1500x0/filters:no_upscale():max_bytes(150000):strip_icc()/joint-and-several-liability.asp-final-a43423f9c58c4a12a8c9e532742e1930.png)

*— Investopedia / Julie Bang*

Joint and several liability is a legal concept where multiple parties share responsibility for damages in a lawsuit. This means a plaintiff can hold any or all responsible parties accountable for the full amount of damages awarded. This legal principle favors plaintiffs, allowing them to collect compensation more efficiently, but it has been limited or reformed in many states to address fairness to less culpable defendants. Most states now limit its application to parties responsible for a significant portion of the harm, reflecting a more balanced approach in legal reform.

### Key Takeaways

*   Joint and several liability allows a plaintiff to hold multiple parties responsible for the full amount of damages in a lawsuit.
*   If one party in the lawsuit cannot pay, the others are required to cover the shortfall regardless of their individual level of responsibility.
*   Many states in the U.S. limit joint and several liability, often to cases where a party is responsible for more than 50% of the damage.
*   Comparative fault, or several liability, often replaces joint liability and limits a party's financial responsibility to their degree of fault.
*   Critics argue that joint and several liability can unfairly penalize parties minimally at fault by requiring them to cover significant financial losses.

## Understanding Joint and Several Liability: A Detailed Breakdown

Joint and several [liability](https://www.investopedia.com/terms/l/liability.asp) favors the plaintiff suing for damages because it empowers them to pursue full payment, if necessary, from the party with the deepest pockets if the others named cannot pay.

If all of the parties involved are [insolvent](https://www.investopedia.com/terms/i/insolvency.asp) and uninsured, then the plaintiff collects nothing.

Joint and several liability differs in law from [comparative fault](https://www.investopedia.com/terms/c/comparative-negligence.asp), in which multiple parties are assigned responsibility for a portion of the damages in relation to the degree of fault that they bear for the harm. In such cases, a plaintiff may be left in the position of seeking damages from the party that is least able to pay.

Comparative fault is sometimes called “pure several liability.” It is more common in the United States than joint and several liability.

Most U.S. states have limited the use of joint and several liability or have developed a hybrid approach. For example, a state might allow joint and several liability to apply only to parties who are found responsible for more than 50% of the damage done.

The hybrid approach stops plaintiffs from adding wealthy parties, like large [corporations](https://www.investopedia.com/terms/c/corporation.asp), to get bigger awards.

## Criticisms and Controversies Surrounding Joint and Several Liability

As noted, joint and several liability tends to benefit the plaintiff, as it increases the chances that all of the damages awarded can be collected.

> **Important**
>
> Most states in the U.S. limit the use of joint and several responsibility or employ a hybrid approach.

It can be unfair if a party with minor responsibility faces a large financial loss.

## Real-World Example: Joint and Several Liability in Action

Workers who got sick from exposure to harmful materials at different job sites might file a joint and several liability case. For example, construction workers could suffer illnesses from toxic substances used across various job sites.

The workers might argue that inadequate precautions were taken by several employers who were responsible for worker safety at various sites where they worked.

## What does it mean to be jointly and severally liable?

Joint and several liability makes all parties in a lawsuit responsible for damages up to the entire amount awarded. That is, if one party is unable to pay, then the others named must pay more than their share.

## What is several but not joint liability?

Several liability (or proportionate liability) is when all parties are liable for just their own respective obligations. In effect, it is the opposite of [joint liability](https://www.investopedia.com/terms/j/joint_liability.asp).

## What is the purpose of joint and several liability?

Joint and several liability is a way to reduce the risk of financial loss to one party to a contract. It allows a plaintiff suing for damages to pursue full payment, if necessary, from the party with the deepest pockets if the others named cannot pay.

## The Bottom Line

Joint and several liability holds all parties in a lawsuit accountable for the full amount of damages awarded. This ensures that the plaintiff has a better chance of collecting the full compensation by allowing them to seek payment from any party involved. However, it can lead to an unfair burden for parties with minimal fault, prompting many U.S. states to impose limits or adopt hybrid approaches. The concept contrasts with comparative fault, where each party pays damages proportional to their responsibility. Understanding the nuances of such liabilities can help individuals and businesses navigate legal responsibilities more effectively.