Also known as: reimburses · reimbursed · reimbursing · reimbursement · reimbursements · repay · compensate
Written by attorneys · grounded in primary & secondary sources — see below
Payment made to compensate a party for expenses incurred or losses suffered in connection with a legal obligation or relationship.
Summit Mutual Insurance Company faces a bad-faith suit from homeowner Dana. At initial disclosure, Dana seeks production of reinsurance treaties that will repay Summit Mutual for any judgment paid. The court orders production because the treaties fall within the category of agreements that may reimburse an insurer for satisfaction of a judgment.
Lawyer Lopez pays a referral service its standard fee after the service directs a client to Lopez. The payment is permitted because it reimburses the service only for its ordinary operating charges rather than rewarding a recommendation of Lopez personally.
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Buyer Riley Rivera spends $40,000 preparing a site after Seller Ralph Richardson promises to convey land. When Richardson breaches, the court awards Riley the $40,000 to place Riley in the position he would have occupied had the contract never been made.
An officer receives a tip that stolen goods are in a warehouse. The court finds probable cause after weighing the informant’s history of accuracy against limited details supplied, because the totality of circumstances shows a fair probability that the goods will be found.
Shareholder Rebecca Ross solicits proxies to elect new directors of Redline Automotive. After the election, the corporation’s bylaws require it to repay Rebecca the reasonable costs she incurred, because the bylaw was adopted before the record date of the contested election.
General partner Roberto Reyes pays $25,000 in partnership taxes from personal funds while managing Rocky Mountain Mining’s operations. The limited partnership must repay Roberto because he complied with the duties of care and loyalty when making the payment.
An insurer must disclose at initial disclosure any agreement under which another insurer may repay it for all or part of a judgment or for payments made to satisfy the judgment. The duty is automatic and does not require a discovery request.
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Reliance interest entitles the promisee to repayment of loss caused by reliance on the contract so that the promisee is placed in the position occupied had the contract never been made.
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A limited partnership must repay a general partner for payments made in the course of partnership activities when the general partner complied with the duties of care, loyalty, and any other statutory requirements.
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A corporation’s bylaws may require reimbursement of a shareholder’s proxy solicitation expenses in connection with director elections, provided the bylaw was adopted before the record date of the election.
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…in business buildings, or rent rooms in hotels or business buildings temporarily for that purpose. The cost of such rentals is reimbursed by appellant. The authority of the salesmen is limited to exhibiting their samples and soliciting orders from prospective buyers, at prices and on terms fixed by appellant. The salesmen…