Also known as:incurs · incurred · incurring · become liable
Written by attorneys · grounded in primary & secondary sources — see below
Conduct by which a party becomes subject to or brings upon itself a liability, expense, or obligation.
Sources & Authorities
How it applies
Common Examples
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Risk of Inconsistent Obligations
Island Manufacturing sued Ines Ibarra for breach of a supply contract. Imperial Motors claimed an interest in the same goods and threatened a separate suit against Ibarra. The court joined Imperial Motors because disposing of the action without it would leave Ibarra subject to a substantial risk of incurring double or inconsistent obligations.
Advance Fees in Trust Account
Ira Irving paid Interlink Communications a $10,000 retainer for upcoming litigation. The firm deposited the sum in its client trust account. It withdrew portions only after earning fees or incurring expenses such as court filing costs.
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Cases
Statutes
Federal Rules
Uniform Acts
Model Codes
Common Law
Restatements
Isaiah Ishikawa removed a state contract dispute to federal court. The district court found no subject matter jurisdiction and remanded the case. The order required Ishikawa to pay the actual expenses, including attorney fees, that Ilana Isaacs incurred as a result of the removal.
Partnership Liability for Penalty
A general partner of Inertia Dynamics signed a contract that violated environmental regulations while acting in the ordinary course of the limited partnership's business. The partnership became liable for the resulting penalty incurred by the partner's conduct.
LLP Shield on New Liabilities
Israel Irving and Imani Idowu formed a limited liability partnership. After the election took effect, the partnership incurred a new contractual debt to a supplier. The partners faced no personal liability for that debt solely by reason of their status as partners.
Reasonable Trust Administration Costs
The trustee of a family trust hired an investment advisor. The advisor's fees were reasonable in relation to the trust property and the trustee's skills, so the trustee properly incurred those costs in administering the trust.
Common questions
Frequently Asked
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How does incurring an expense differ from merely paying one?+
Incur refers to becoming subject to the liability or obligation through one's conduct or circumstances. Payment is the later act of satisfying that already-incurred obligation.
When does a lawyer become entitled to withdraw advance fees from a trust account?+
The lawyer may withdraw funds only as fees are earned or expenses incurred. Until that point the funds remain client property in the trust account.
What expenses may a remand order require the removing party to pay?+
The order may require payment of just costs and any actual expenses, including attorney fees, incurred as a result of the removal.
Under what circumstances does a limited partnership incur liability for a general partner's acts?+
The partnership is liable for a penalty incurred when the general partner acts in the ordinary course of the partnership's activities or with its actual or apparent authority.
Does becoming an LLP protect partners from liabilities incurred before the election?+
No. The shield applies only to debts, obligations, or liabilities incurred while the partnership is an LLP.
What standard governs costs a trustee may incur?+
A trustee may incur only costs that are reasonable in relation to the trust property, the purposes of the trust, and the skills of the trustee.
326 U.S. 310 (1945)Civil Procedure
…traditional conception of fair play and substantial justice, to permit the state to enforce the obligations which appellant has incurred there. Hence we cannot say that the maintenance of the present suit in the State of Washington involves an unreasonable or undue procedure. We are likewise unable to conclude that the…