Mary Carter agreement
Legal Definition of Mary Carter agreement
: a secret agreement between a plaintiff and one or more but not all codefendants which limits the liability of the defendants by giving them an interest in the recovery awarded to the plaintiff
Additional Notes on mary carter agreement
In a Mary Carter agreement, the participating defendants agree to remain as parties to the lawsuit and guarantee payment to the plaintiff of a settled amount if no recovery is awarded against the other defendants. The plaintiff agrees to offset their liability by, or sometimes even to pay them from, a recovery awarded from the other defendants. Some states allow the admission of Mary Carter agreements into evidence. In other states they are illegal.
Origin and Etymology of mary carter agreement
from Booth v. Mary Carter Paint Co., 202 So. 2d 8 (1967), Florida appeals court case that popularized the agreement
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