In: Accounting
Discuss the three possible situations that can arise with respect to contributory claims
A contribution claim is a claim brought by one or more defendants to a lawsuit for money damages brought by a plaintiff. A contribution claim asserts the party (usually a defendant) is entitled to "contribution" from a third party for any money damages awarded to the plaintiff.
Situation 1 – Where landlord and tenant file case against contractor
Mr Henry lives in Cent-John Apartment on rent. Apart from the 3BHK he taken on rent, landlord also gave one common garage for car parking. One day, when henry went to office & for his car. He opened the shutter and accidentally shutter fell on his card. Henry’s car got smashed almost and he also met with major injuries.
In response to this, Henry filed the case against landlord demanding compensation. His landlord constructs the garage and installed shutter recently and contractor gave him one year warranty. So after this mis-happening , he filed joint case with tenant on Contractor.
Situation 2 – Where customer and insurance company demanded claim for customer.
Mr Josh purchased new BMW with advance technology of Nitro engine. One day, on the way to his office, he was getting late so he increased his vehicle speed. His engine got busted and he died.
His family wants money of his life insurance policies but insurance company denied with reason that it is the fault of BMW. In this case both GIC insurance Co and family of josh filed the case against BMW.
Situation 3 – Where employees filed case against company.
One day, Mr Bob hand stuck in wobbling machine whose another side operated by Kenly. However tools got disturb due to sudden electricity problem. So both Bob and Kenly sue against Godswith Inc. for compensation for Bob