If you’ve ever been in a situation where multiple parties were liable for a legal issue, you may have encountered a Pierringer Agreement. This handy tool can help set the stage for an entrepreneurial venture. Understanding a Pierringer Agreement can be empowering for the entrepreneur, simplifying complex legal issues and even preventing lengthy court battles. Just as personal empowerment and creative coaching can be catalysts for personal achievements, knowing how to navigate the technicalities of a Pierringer Agreement can help the entrepreneur soar to new heights.
What is a Pierringer Agreement?
A Pierringer Agreement is named after the court case that recognized the modern concept in Canada: Pierringer v. Hewitt, [1975] 3 S.C.R. 536, [1975] CTC 256 (SCC). A Pierringer Agreement is a joint tortfeasor agreement that creates a joint liability but preserves the right to pursue an independent claim against one or more parties. For the entrepreneur, this could mean the difference between receiving nothing at all from a joint liability or opening the door to ongoing financial resources.
A Joint Tortfeasor Agreement
A joint tortfeasor agreement is a very structured legal process. In some cases, a person or business structure can become liable for the debts of another group or individual. In this capacity, a joint tortfeasor is normally an agent of the person or group responsible for the debt. In other cases, a person or group simply has financial involvement with the individual or group responsible for the debt. The courts typically require all parties to be named in an action. Under a Pierringer Agreement, the individual or group does not have to be named.