Publication Date
2004
Journal
Cardozo Law Review
Abstract
Suppose A has a claim against B. B has a claim over against C. B, however, is insolvent and has not actually paid A. B's only asset is, in fact, B v C. To what extent can C claim that B v C is valueless - that B was not damaged because B was too broke to pay A?
This paper argues that the fundamental legal distinction between indemnity and liability is beginning to dissolve, because B can always pay A (and thereby give value to B v C) by borrowing the amount B owes and using B v C as collateral for the loan. This very possibility tends to render the distinction between indemnity and liability obsolete.
Volume
25
First Page
1951
Publisher
Benjamin N. Cardozo School of Law
Keywords
indemnity, insurance, liability, damages, bankruptcy
Disciplines
Law
Recommended Citation
David G. Carlson,
Indemnity, Liability, Insolvency,
25
Cardozo L. Rev.
1951
(2004).
https://larc.cardozo.yu.edu/faculty-articles/43
