What Is Pari Delicto? An Overview of the Legal Doctrine

Pari delicto is a Latin legal term that translates to mean “of equal fault.” The doctrine of pari delicto is used in civil law to mitigate damages or losses that result from two wrongdoers. That means both parties in a dispute share the blame and the court will often not award damages to either party.

Examples of Pari Delicto in the Modern World

To better understand the concept of pari delicto, consider the example of two companies (Company A and Company B) entering into a business deal together. Both sides agree to certain terms, but fail to execute the agreement properly. In the eyes of the law, Company A and Company B are both at fault for not being able to execute the agreement, so they are said to be in pari delicto.

Another example is two individuals purchasing a piece of property together. If both individuals fail to pay off the loan, they are described as being in pari delicto and the lender may decide not to pursue either of them for the missed payments.

When Does the Doctrine of Pari Delicto Not Apply?

This doctrine is generally not used in cases of fraud, unconscionability, or public policy violations. This is because both parties cannot be deemed equally responsible for the failure to execute a transaction or obligation when one of the parties is guilty of maliciously or unlawfully doing so.

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In addition, if one of the parties was coerced into executing the agreement, the doctrine of pari delicto does not apply. In the case of a breach of contract, this often means that the blame will be placed on the party that committed the breach, and they may be liable for damages.

The Bottom Line

The doctrine of pari delicto is an interesting legal concept, and one that can be confusing to understand. It’s important to remember that this doctrine applies when two parties are equally to blame for a dispute, and that it does not apply in cases of fraud, unconscionability, or public policy violations. Hopefully, this guide has provided a clearer understanding of what pari delicto is and how it works.

Related Legal Concepts

Understanding pari delicto often goes hand in hand with the closely related principle of in pari delicto, which serves as the foundation for this equitable doctrine. When courts analyze whether parties share equal fault, they frequently examine claims that arise ex delicto, meaning “from a wrong” or tort-based claims, to determine if the wrongful conduct is truly comparable between the disputants.

The Bottom Line

Pari delicto serves as an important equitable principle that prevents courts from rewarding parties who are equally at fault in creating a legal dispute. This doctrine encourages parties to act responsibly in their legal relationships while ensuring that neither wrongdoer gains an unfair advantage through litigation. For guidance specific to your situation, always consult a qualified, licensed attorney.