Capital Gain: The profit made from the sale of
a capital asset, such as real estate, a house, jewelry
or stocks and bonds.
Capital Loss: The loss that results from the
sale of a capital asset, such as real estate, a house,
jewelry or stocks and bonds.
Caps on Damages: A damages cap is an arbitrary
ceiling on the amount an injured party can receive in
compensation by a judge or jury, irrespective of what
the evidence presented at a trial proves compensation
should be. A cap is usually defined in a statute by a
dollar figure or by tying the cap to another type of
damages (e.g. two times compensatory damages). Caps
usurp the authority of judges and juries, who listen to
the evidence in a case, to decide compensation based on
each specific fact situation. Several states have
declared caps unconstitutional.
Caps on Non-Economic Damages: Non-economic
damages compensate injured consumers for intangible but
real injuries, like infertility, permanent disability,
disfigurement, pain and suffering, loss of a limb or
other physical impairment. Caps or limits on
non-economic damages have a disproportionate effect on
plaintiffs who do not have high wages - like women who
work inside the home, children, seniors or the poor, who
are thus more likely to receive a greater percentage of
their compensation in the form of non-economic damages
if they are injured.
Caps on Punitive Damages: Punitive damages,
also known as "exemplary damages," are
assessed against defendants by judges or juries to
punish particularly outrageous, deliberate or harmful
misconduct, and to deter the defendant and others from
engaging in similar misconduct in the future.
Case Law: Also known as common law. The law
created by judges when deciding individual disputes or
cases.
Case of First Impression: A novel legal
question that comes before a court.
Caveat Emptor: Latin for "buyer
beware." This rule generally applies to all sales
between individuals. It gives the buyer full
responsibility for determining the quality of the goods
in question. The seller generally has no duty to offer
warranties or to disclose defects in the goods.
Certiorari: Latin that means "to be
informed of." Refers to the order a court issues so
that it can review the decision and proceedings in a
lower court and determine whether there were any
irregularities. When such an order is made, it is said
that the court has granted certiorari.
Challenge for Cause: Ask that a potential
juror be rejected if it is revealed that for some reason
he or she is unable or unwilling to set aside
preconceptions and pay attention only to the evidence.
Chambers: A judge's office.
Change of Venue: A change in the location of a
trial, usually granted to avoid prejudice against one of
the parties.
Charge to the Jury: The judge's instructions
to the jury concerning the law that applies to the facts
of the case on trial.
Charge: The law that the police believe the
defendant has broken.
Charging Lien: Entitles a lawyer who has sued
someone on a client's behalf the right to be paid from
the proceeds of the lawsuit, if there are any, before
the client receives those proceeds.
Chief Judge: The judge who has primary
responsibility for the administration of a court but
also decides cases; chief judges are determined by
seniority.
Circumstantial Evidence: Indirect evidence
that implies something occurred but doesn't directly
prove it. If a man accused of embezzling money from his
company had made several big-ticket purchases in cash
around the time of the alleged embezzlement that would
be circumstantial evidence that he had stolen the money.
Class Action Suit: A lawsuit in which one or
more parties file a complaint on behalf of themselves
and all other people who are "similarly
situated" (suffering from the same problem). Often
used when a large number of people have comparable
claims.
Clear And Convincing Evidence: The level of
proof sometimes required in a civil case for the
plaintiff to prevail. Is more than a preponderance of
the evidence but less than beyond a reasonable doubt.
Clerk of the Court: An officer appointed by
the court to work with the chief judge in overseeing the
court's administration, especially to assist in managing
the flow of cases through the court and to maintain
court records.
Closing: In a real estate transaction, this is
the final exchange in which the deed is delivered to the
buyer, the title is transferred, and the agreed-on costs
are paid.
Cohabitation Agreement: Also called a
living-together contract. A document that spells out the
terms of a relationship and often addresses financial
issues and how property will be divided if the
relationship ends.
Collateral Source Rule: The collateral source
rule prevents a wrongdoer from reducing its financial
responsibility for the injuries it causes by the amount
an injured party receives (or could later receive) from
outside sources. Payments from outside sources are those
unrelated to the wrongdoer, like health or disability
insurance, for which the injured party has already paid
premiums or taxes. The rule also prevents juries from
learning about such collateral payments, so as not to
unfairly influence with verdict. States that have
modified this rule have either completely repealed it,
mandating that payments received from health insurance,
social security or other sources be used to reduce the
wrongdoer's liability. Or, they allow juries to hear
during trial about collateral payments.
Collateral: An asset that a borrower agrees to
give up if he or she fails to repay a loan.
Collective Bargaining Agreement: The contract
that spells out the terms of employment between a labor
union and an employer.
Comity: A code of etiquette that governs the
interactions of courts in different states, localities
and foreign countries. Courts generally agree to defer
scheduling a trial if the same issues are being tried in
a court in another jurisdiction. In addition, courts in
this country agree to recognize and enforce the valid
legal contracts and court orders of other countries.
Common Law: The legal system that originated
in England and is now in use in the United States. It is
based on judicial decisions rather than legislative
action.
Community Property: Property acquired by a
couple during their marriage. Refers to the system in
some states for dividing the couple's property in a
divorce or upon the death of one spouse. In this system,
everything a husband and wife acquire once they are
married is owned equally (fifty-fifty) by both of them,
regardless of whom provided the money to purchase the
asset or whose name the asset is held in.
Comparative Negligence: Also called
comparative fault. A system that allows a party to
recover some portion of the damages caused by another
party's negligence even if the original person was also
partially negligent and responsible for causing the
injury. Not all states follow this system.
Compensatory Damages: Money awarded to
reimburse actual costs, such as medical bills and lost
wages. Also awarded for things that are harder to
measure, such as pain and suffering.
Complaint: In a civil action, this is a
document that initiates a lawsuit. The complaint
outlines the alleged facts of the case and the basis for
which a legal remedy is sought.
Conflict of Interest: Refers to a situation
when someone, such as a lawyer or public official, has
competing professional or personal obligations or
personal or financial interests that would make it
difficult to fulfill his duties fairly.
Consideration: Something of value that is
given in exchange for getting something from another
person.
Contempt of Court: An action that interferes
with a judge's ability to administer justice or that
insults the dignity of the court. Disrespectful comments
to the judge or a failure to heed a judge's orders could
be considered contempt of court. A person found in
contempt of court can face financial sanctions and, in
some cases, jail time.
Contingency Fee Limits: Under a contingency
fee arrangement, a lawyer agrees to take a case on
behalf of an injured client without obtaining any money
up front from the client. This system provides injured
consumers who could not otherwise afford legal
representation with access to the courts. Typically,
states limit contingency fees by capping them sometimes
way below one-third, sometimes along a sliding scale so
fee percentages decrease, sometimes drastically, as
judgments increases. The principal impact of contingency
fee limits is to make it less likely attorneys can
afford to risk bringing many cases, particularly the
more costly and complex ones, providing practical
immunity for many wrongdoers
Continuance: Put off trial until another time.
Contract: An agreement between two or more
parties in which an offer is made and accepted, and each
party benefits. The agreement can be formal, informal,
written, oral or just plain understood. Some contracts
are required to be in writing in order to be enforced.
Contributory Negligence: Prevents a party from
recovering for damages if he or she contributed in any
way to the injury. Not all states follow this system.
Copyright: A person's right to prevent others
from copying works that he or she has written, authored
or otherwise created.
Corporation: An independent entity created to
conduct a business. It is owned by shareholders.
Counsel: Legal advice; a term used to refer to
lawyers in a case.
Counterclaim: A claim that a defendant makes
against a plaintiff.
Court Reporter: A person who makes a
word-for-word record of what is said in court and
produces a transcript of the proceedings upon request.
Court: Government entity authorized to resolve
legal disputes. Judges sometimes use "court"
to refer to themselves in the third person, as in
"the court has read the briefs."
Creditor: A person (or institution) to whom
money is owed.
Cross Examination: The questioning of an
opposing party's witness about matters brought up during
direct examination.
