Mary carter agreement
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"Mary Carter Agreement" (Legal/Law)
Commonly known as a "loan receipt agreement." This type of agreement between a plaintiff and a defendant is one of the most litigated agreements in United States jurisprudence.
Its name is derived from the first case it which it was reported: Booth v. Mary Carter Paint Co., (Fla. Dist. Ct. App. 1967, 202 So.2d 8)(emphasis added).
A Mary Carter Agreement -- "loan receipt agreement" -- is an agreement between the plaintiff and one or more defendants wherein the settling defendant or defendants give the plaintiff a sum certain amount of money in return for which the plaintiff executes an agreement stating the plaintiff will repay a portion or all of the money given or, in essence, "loaned," to the plaintiff upon receipt of monies or recovery from the non-settling defendant or defendants.
The essential feature of a "Mary Carter" agreement is the repayment of the loan from monies recovered from the non-settling co-defendants. Should there be no further recovery, there is no repayment.
