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litigation privilege A privilege protecting the attorneys and parties in a lawsuit against tort claims based on certain acts done and statements made when related to the litigation. The privilege is most often applied to defamation claims but may be extended to encompass other torts, such as invasion of privacy and disclosure of trade secrets. The facts of each case determine whether the privilege applies and whether it is qualified or absolute. - Also termed judicial-proceedings privilege; judicial privilege; defamation privilege.

livery of seisin See LIVERY OF SEISIN.

living-together agreement See COHABITATION AGREEMENT.

Lloyd's bond A corporate bond issued on work done or goods delivered . A bond issued in this manner avoids any restriction on indebtedness existing either in law or in corporate bylaws. The term supposedly derives from an English lawyer named Lloyd, who is credited with devising the method.

Lloyds insurance Insurance provided by insurers as individuals, rather than as a corporation. The insurers liability is several but not joint. Most states either prohibit or strictly regulate this type of insurance. See LLOYDS OF LONDON.

loan broker A person who is in the business of lending money, usu. to an individual, and taking as security an assignment of wages or a security interest in the debtor's personal property.

loan-origination fee A fee charged by a lender to cover the administrative costs of making a loan.

local action An action that can be brought only in the jurisdiction where the cause of action arose, as when the action's subject matter is a piece of real property.

local administrator Conflict of laws. An administrator appointed in the state where property is located or where an act is done. 2. A person appointed by the court to manage the assets and liabilities of an intestate decedent . This term once referred to males only (as opposed to administratrix), but legal writers now generally use administrator to refer to someone of either sex. In the Restatement of Property, the term administrator includes the term executor unless specifically stated otherwise. Cf. EXECUTOR (2).

local agency A political subdivision of a state . Local agencies include counties, cities, school districts, etc.

local agent An agent appointed to act as another's (esp. a company's) representative and to transact business within a specified district.

local assessment A tax to pay for improvements (such as sewers and sidewalks) in a deSignated area, levied on property owners who will benefit from the improvements. Also termed local- improvement assessment. "Since there is [an] important and fundamental distinction between the tax in the more limited sense and the local assessment, the question often arises whether provisions in constitutions and statutes which refer by name to taxes, include also local assessments. This is primarily a question of legislative intention. In the absence of anything to show the specific intention of the legislature, the general rule is that the local assessment possesses such marked peculiarities differentiating it from the tax in the more limited sense of the term, that the use of the term 'tax' does not prima facie show an intention to include local assessments." 1 William H. Page & Paul Jones, A Treatise on the Law of Taxation by Local and Special Assessments § 39, at 67 (1909).

local bar association A bar association organized on a local level, such as an association within a county or city . Local bar associations are voluntary in mem-bership.

local chattel Personal property that is affixed to land; FIXTURE.

local counsel One or more lawyers who practice in a particular jurisdiction and are retained by nonresident counsel to help prepare and try a case or to complete a transaction in accordance with that jurisdiction's law, rules, and customs.

local court A court whose jurisdiction is limited to a particular territory, such as a state, municipal, or county court.

local custom A custom that prevails in some defined locality only, such as a city or county, and constitutes a source of law for that place only. Also termed particular custom; special custom. 2. (pl.) Duties imposed on imports or exports. 3. (pl.) The agency or procedure for collecting such duties.

local government The government of a particular locality, such as a city, county, or parish; a governing body at a lower level than the state government. The term includes a school district, fire district, transportation authority, and any other special-purpose district or authority. Also termed municipal government.

local improvement A real-property improvement, such as a sewer or sidewalk, financed by special assessment, and specially benefiting adjacent property.

local law See LOCAL LAW.

local receiver Conflict of laws. A receiver appointed in the state where property is located or where an act is done.

local statute 1. See LOCAL LAW (1). 2. See LOCAL LAW (2).

lock rate A mortgage-application interest rate that is established and guaranteed for a specified period. Also termed locked-in rate.

logical interpretation Interpretation that departs from the literal words on the ground that there may be other, more satisfactory evidence of the authors true intention. Also termed rational interpretation.

long account An account involving numerous items or complex transactions in an equitable action, usu. referred to a master or commissioner.

long term capital gain The profit realized from selling or exchanging a capital asset held for more than a specified period, usu. one year.

long-arm jurisdiction Jurisdiction over a nonresident defendant who has had some contact with the jurisdiction in which the petition is filed.

long-firm fraud The act of obtaining goods or money on credit by falsely posing as an established business and having no intent to pay for the goods or repay the loan.

long-form bill of lading A bill oflading that expressly contains all the terms of the transportation contract. Cf. short-form bill of lading.

long-term debt Generally, a debt that will not come due within the next year.

long-term foster care The placing of a child in foster care for extended periods, perhaps even for the child's entire minority, in lieu of family reunification, termination and adoption, or guardianship. Although most courts do not generally find this arrangement to be in a child's best interests, sometimes it is the only possibility, as when the child, because of age or disability, is unlikely to be adopted or when, although the parent cannot be permanently reunited with the child, limited contact with the parent would serve the child's best interests. Under the Adoption and Sate Families Act, long-term foster care is the permanent placement of last resort. 2. The area of social services concerned with meeting the needs of children who participate in these types of programs.

long-term security 1. A new securities issue with an initial maturity of ten years or more. 2. On a balance sheet, a security with a remaining maturity of one year or more.

loose construction See liberal construction.

loose constructionism See liberal constructionism.

loose constructionist See liberal constructionist.

lord mayor's court A court oflaw and equity that had jurisdiction in civil cases arising within the city of London and acted as the appellate court from the Chamberlain Court. It was abolished by the Court Act of 1971.

loss insurance Insurance purchased by a person who may suffer a loss at the hands of another. This is the converse of liability insurance, which is purchased by potential defendants.

loss reserve 1. An insurance company s reserve that represents the estimated value of future payments, as for losses incurred but not yet reported. 2. A bank s reserve set aside to cover possible losses, as from defaulting loans.

loss-of-bargain damages See benefit-of-the-bargain damages.

lost boundary A boundary whose markers have decayed, changed, or been removed or displaced in such a manner that the boundary's correct location can no longer be determined with confidence.

lost corner A point in a land description, such as a landmark or natural object, whose position cannot be reasonably determined from traces of the original marks or other acceptable evidence. The location can be determi ned hy reference to one or more independent points remaining in the description.

lost earnings wages salary, or other income that a person could have earned if he or she had not lost a job, suffered a disabling injury, or died. Lost earnings are typically awarded as damages in personal-injury and wrongful-termination cases. There can be past lost earnings and future lost earnings. Both are subsets of this category, though legal writers sometimes loosely use future earnings as a synonym for lost earnings. Cf. LOST EARNING CAPACITY.

lost profits See LOST PROFITS.

lost property Property that the owner no longer possesses because of accident, negligence, or carelessness, and that cannot be located by an ordinary, diligent search. Cf. abandoned property; mislaid property.

lost-expectation damages See expectation damages.

lost-profits damages See LOST-PROFITS (1).

love day 1. A day when neighbors amicably settled a dispute. 2. A day when one neighbor helped another without payment.

low diligence See slight diligence.

low justice Jurisdiction over petty offenses.

lowbote See LOWBOTE.

lower chamber In a bicameral legislature, the larger of the two legislative bodies, such as the House of Representatives or the House of Commons.

lower court 1. See court below. 2. See inferior court.

lower estate See servient estate.

low-grade security A security with low investment quality. Low-grade securities usu. offer higher yields to attract capital. See high-yield bond under BOND (3).

loyalty oath See oath ofallegiance.

lucrative bailment See bailment for hire.

lucrative office 1. A position that produces fee revenue or a salary to the office holder. 2. A position that yields a salary adequate to the services rendered and exceeding incidental expenses; a position whose pay is tied to the performance of the office s duties.

lucrative succession Scots law. See PRAECEPTlO HAEREDITATIS.

lukewarm bench A court, esp. an appellate court, in which only some of the judges, before oral argument, have familiarized themselves with the facts and issues of the case. Also termed tepid bench. Cf. hot bench; cold bench "I must digress, for a moment to discuss what I choose to call the 'tepid,' or 'lukewarm,' bench. That'S the bench on which one or more of the panel try to read the briefs or are engaged in conversation with a colleague while the argument is being presented. The judges cannot concen· trate on either the brief or the oral argument. You can only hope that the chandelier will fall and fix their attention on at least one thing and that their consciences will so prick them that later, in the quiet of their chambers, they will apply themselves to a study of the briefs without distrac· tion." Samuel E. Gates, "Hot Bench or Cold Bench: When the Court Has Not Read the Brief before Oral Argument," in Counsel on Appeal 107, 121-22 (Arthur A. Charpentier ed.,1968).

lumping sale A court-ordered sale in which several distinct pieces of property are sold together for a single sum.

lump-sum alimony See alimony in gross.

lump-sum payment A payment of a large amount all at once, as opposed to a series of smaller payments over time. Cf. periodic payment.

luxury tax An excise tax imposed on highpriced items that are not deemed necessities (such as cars costing more than a specified amount). Cf. sin tax.

Machinists preemption Labor law. The doctrine prohibiting state regulation of an area of labor activity or management-union relations that Congress has intentionally left unregulated. Lodge 76, Int l Ass n of Machinists v. Wisconsin Employment Relations Commn, 427 U.S. 132,96 S.Ct. 2548 (1976).

made land Artificially formed land, usu.land that has been reclaimed by filling or created by dredging

maegbote (mag-boht). Bote paid to the relatives of an injured person.

magisterial precinct A county subdivision that defines the territorial jurisdiction of a magistrate, constable, or justice of the peace. Also termed magisterial district.

magistrate's court (maj-i-strayts or -strits). 1. A court with jurisdiction over minor criminal offenses. Such a court also has the power to bind over for trial persons accused of more serious offenses. Also termed police court. 2. A court with limited jurisdiction over minor criminal and civil matters. Sometimes spelled (esp. in England) magistrates' court. Also termed (in England) court of petty sessions; court ofsummary jurisdiction.

maiden assize 1. An assize in which no prisoner is sentenced to death. 2. An assize in which the sheriff presents the judges with white gloves because there are no prisoners to try . This practice stemmed from a custom in which a prisoner who was convicted of murder but pardoned by the Crown presented gloves to the judges as a fee. 2. A law enacted by such a body, usu. one setting the measure, weight, or price of a thing.

mailfraud An act offraud using the U.S. Postal Service, as in making false representations through the mail to obtain an economic advantage. 18 USCA §§ 1341-1347.

mail-order divorce A divorce obtained by parties who are not physically present or domiciled in the jurisdiction purporting to grant the divorce. Such a divorce is not recognized in the United States because of the absence of the usual bases for jurisdiction.

main channel The bed over which the principal volume of water flows; the deepest and most navigable part of a channel.

main demand Civil law. A plaintiff's principal or primary claim against one or more defendants, contained in an original or validly amended pleading. Also termed principal demand; principal action.

main sea Archaic. The open ocean; high seas.

maintenance assessment See MAINTENANCE FEE (2).

maintenance bond A bond guaranteeing against con-struction defects for a period after the completion of the contracted for work.

maintenance fee See MAINTENANCE FEE.

major crime See FELONY (1).

major dispute Labor law. Under the Railway Labor Act, a disagreement about basic working conditions, often resulting in a new collective-bargaining agreement or a change in the existing agreement.Under the Act, two classes of disputes - major and minor - are subject to mandatory arbitration. 45 USCA § 155. Also termed new-contract dispute.

major offense An offense the commission of which involves one or more lesser included offenses, as murder may include assault and battery.

majority opinion An opinion joined in by more than half the judges considering a given case. Also termed main opinion.

majority report Parliamentary law. A committee report, as distingUished from a minority report. See committee report. Cf. minority report.

majority shareholder A shareholder who owns or controls more than half the corporations stock.

majority-minority district A voting district in which a racial or ethnic minority group makes up a majority of the voting citizens.

malicious abandonment 1. The desertion of a spouse without just cause. See criminal desertion under DESERTION.

malicious accusation An accusation against another for an improper purpose and without probable cause. See MALICIOUS PROSECUTION.

malicious arrest An arrest made without probable cause and for an improper purpose; esp., an abuse of process by which a person procures the arrest (and often the imprisonment) of another by means of judicial process, without any reasonable cause. Malicious arrest can be grounds for an action for abuse ofprocess, false imprisonment, or malicious prosecution.

malicious assault with a deadly weapon An aggravated assault in which the victim is threatened with death or serious bodily harm from the defendant's use of a deadly weapon. Malice is inferred from both the nature of the assault and the weapon used.

malicious bankruptcy An abuse of process by which a person wrongfully petitions to have another person adjudicated a bankrupt or to have a company wound up as insolvent.

malicious defense A defendant's use of unfair, harassing, or illegal tactics to advance a frivolous or unmeritorious defense. The elements of the tort are (1) the defendant's initiation, continuation, or procurement of proceedings; (2) knowledge that the defense lacks merit; (3) the assertion of the defense for a purpose other than to properly adjudicate the claim, such as to harass, annoy, or injure, or to cause unnecessary delay or needless increase in the cost of litigation; (4) termination of the suit in the plaintiff's favor; and (5) harm to the plaintiff resulting from the proceeding. Damages are the same as in an action for malicious prosecution. A minority ofstates recognize the tort. Cf. MALICIOUS PROSECUTION.

malicious execution An abuse of process by which a person, maliciously and without reasonable cause, issues an execution against the property of a judgment debtor.

malicious injury 1. An injury resulting from a willful act committed with knowledge that it is likely to injure another or with reckless disregard of the consequences. 2. MALICIOUS MISCHIEF.

malpractice insurance (mal-prak-tis). An agreement to indemnify a professional person, such as a doctor or lawyer, against negligence claims. See errors-and-omissions insurance. "Most contemporary lawyers regard malpractice insurance as an expensive, but essential, part of law practice. Its cost, along with other costs of the lawyers trade, is ultimately borne by the consumer, the client who pays the lawyers fees .. , . Neither the ABA Code nor the ABA Model Rules impose an ethical obligation to carry adequate malpractice insurance. But contemporary lawyers have found it prudent to do so, both to protect their personal assets and to promote their public image as reliable professionals who are financially responsible." Mortimer D. Schwartz & Richard C. Wydick, Problems in Legal Ethics 127-28 (2d ed,1988).

management buyout 1. A buyout of a corporation by its own directors and officers. 2. A leveraged buyout of a corporation by an outside entity in which the corporation's management has a material finan-cial interest. - Abbr. MBO. See GOING PRIVATE.

management company Any investment company that is neither a face-amount certificate company nor a unit-investment trust. See investment company;faceamount certificate company; unit-investment trust under TRUST.

management fee A fee charged by an investment manager for supervisory services.

managing agent A person with general power involving the exercise of judgment and discretion, as opposed to an ordinary agent who acts under the direction and control of the principal. Also termed business agent.

managing conservator 1. A person appointed by a court to manage the estate or affairs of someone who is legally incapable of doing so; GUARDIAN (1). 2. In the childcustody laws of some states, the parent who has primary custody of a child, with the right to establish the child's primary domicile. See CUSTODY.

manbote Compensation for killing someone. Also termed kinbote.

mandatory commitment An automatically required commitment for a defendant found not guilty by reason of insanity. TIlis type of commitment is required under federal law, but in minority of states.