Deep Pockets

Term that refers to a defendant with funds sufficient to pay a large judgment. Being recognised as having deep pockets may attract litigation. Lacking deep pockets may mean that even where a party is properly liable in law, they are not worth bringing a litigation against. From a commercial perspective, contractual rights such as warranties and indemnities are of little value if the warrantor or indemnifier lacks pockets sufficiently deep to be able to stand behind the warranty or indemnity.

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