Also known as: in personam liabilities · personal liability · liability in personam
Written by attorneys · grounded in primary & secondary sources — see below
Liability that attaches directly to a person or entity and may be enforced against that person's or entity's general assets. The liability arises from a personal obligation rather than from an interest in specific property.
Ismael Ibrahim sold his mortgaged home to Integrity Partners. The deed recited that the buyer assumed the loan, but the lender never executed a release of Ismael. When the buyer defaulted, the lender obtained a deficiency judgment against Ismael personally after foreclosure.
Imran Iyer formed Ironclad Industries as a shell with minimal capital and ignored corporate formalities to shield himself from contract claims. Creditors sued and the court disregarded the entity, entering judgment against Imran personally for the corporate debts.
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Ian Iverson sued Israel Irving in Oregon over a personal debt. The only notice was publication in a local newspaper. Because the suit sought a personal money judgment rather than relief against Oregon property, the court lacked authority to bind Israel personally.
Imani Idowu received an agency compensation order for workplace injuries. The order imposed liability directly on Imani as the responsible employer rather than on any vessel or other res, allowing collection from Imani's personal assets.
Irene Ingalls sued Imperial Motors in Delaware by attaching its shares held in the state. The claim sought damages for corporate mismanagement unrelated to the shares. The court held that the attachment could not support a personal judgment against the company.
In admiralty, in personam liability reaches the shipowner personally and may be satisfied from any assets. In rem liability attaches only to the vessel itself. Dismissal of an in personam action ordinarily bars a later in rem action, and vice versa.
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The transferor remains personally liable unless the mortgagee grants an express release or the transferor obtains a suretyship defense. The mere transfer does not discharge the original obligation even if the transferee assumes the debt.
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Courts apply a two-prong test: the corporation must have been the alter ego of the shareholder, and adherence to the corporate form must sanction fraud or injustice. Undercapitalization combined with disregard of formalities can satisfy both prongs.
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No. A limited partner is not personally liable for partnership obligations solely by reason of participating in management or failing to observe formalities. Liability arises only if other law, such as apparent authority, independently imposes it.
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…in rem." The effect of a judgment in such a case is limited to the property that supports jurisdiction and does not impose a personal liability on the property owner, since he is not before the court. In Pennoyer 's terms, the owner is affected only "indirectly" by an in rem judgment adverse to his interest in the property…