not certain. It included not obeying the formula and
not adjourning the trial properly, but it may also have
included overt acts of corruption, such as accepting
bribes.
lite pendente (h-tee pen-den-tee). [Latin] See PENDENTE
LITE.
litera (lit-<:lr-<:l), n. [Latin "letter"] Hist. 1. A letter. 2.
The letter of a law, as distinguished from its spirit. PI.
literae. -Also spelled littera. See LETTER (3).
literacy test. Hist. A test ofone's ability to read and write,
formerly required in some states as a condition for reg
istering to vote . Literacy tests were abused at various
times in United States history to preclude minorities
from exercising the right to vote. This practice was
prohibited by the Voting Rights Act of 1965.42 USCA
 1971-1974. See South Carolina v. Katzenbach, 383
U.S. 301, 86 S.Ct. 8 (1966). [Cases: Elections C=:c59.]
literae mortuae (lit-<:lr-ee mor-choo-ee), n. [Latin] Hist.
Dead letters; filler words in a statute.
literae patentes (lit-<:lr-ee p<:l-ten-teez), n. [Latin "open
letters"] Hist. A public grant from the sovereign to
a subject, conferring the right to land, a franchise, a
title, liberty, or some other endowment.  The modern
"patent" and, more closely, "letters patent" derive from
this term. See LETTERS PATENT (1).
'The term 'patent' is short for 'letters patent,' derived from
the Latin literae patentes, meaning open letters. Generally,
letters patent were letters addressed by the sovereign 'to
all whom these presents shall come,' reciting a grant of
some dignity, office, franchise, or other privilege that has
been given by the sovereign to the patentee.'" Donald S.
Chisum et aI., Principles of Patent Law 2 (1998).
literae procuratoriae (lit-<:lr-ee prok-p-r<:l-tor
ee-ee), n. [Law Latin] Hist. Letters of procuration;
letters of attorney; power of attorney. See POWER OF
ATTORNEY.

1017
literae recognitionis (lit-~r-ee rek-~g-nish-ee-oh-nis), n.
[Latin] Hist. A bill oflading. See BILL OF LADING.
literae sigillatae (lit-~r-ee sij-~-lay-tee), n. [Latin] Hist.
Sealed letters. _ A sheriff's return on a writ was often
called literae sigillatae.
literal, adj. (l6c) According to expressed language.
Literal performance ofa condition requires exact com
pliance with its terms.
literal canon. See strict constructionism under CON
STRUCTIONISM.
literal construction. See strict construction under CON
sTRucTION.
literal contract. See CONTRACT.
litera legis. See LETTER OF THE LAW.
literal infringement. See INFRINGEMENT.
literal interpretation. See strict construction under CON
STRUCTION.
literal proof. See PROOF.
literal rule. See strict constructionism under CONSTRUC
TIONISM.
literary, adj. Ofor relating to literature or other written
forms ofexpression.
literary composition. A written expression involv
ing mental effort, arranged in a purposeful order. Cf.
literary work under WORK (2). [Cases: Copyrights and
Intellectual Property C:)5.]
literary executor. See EXECUTOR.
literary property. 1. The physical property in which an
intellectual production is embodied, such as a book,
screenplay, or lecture. [Cases: Copyrights and Intellec
tual Property (~41.3.] 2. An owner's exclusive right
to possess, use, and dispose of such a production. See
COPYRIGHT; INTELLECTUAL PROPERTY. [Cases: Copy
rights and Intellectual Property C=)36.]
. literary work. See WORK (2).
literate, adj. (ISc) 1. Able to read and write a language.
2. Knowledgeable and educated. -literacy, n.
literatura (lit-;n-~-t[yluur-~). n. [Latin fr.litera "a letter"]
Hist. Education. _ Ad literaturam ponere means the
right to educate one's children, esp. male children.
During feudal times, servile tenants could not educate
their children without the lord's consent.
litigable (lit-<l-g<l-b<ll), adj. (l8c) Able to be contested or
disputed in court <litigable claims>. litigability, n.
litigant. (17c) A party to a lawsuit.
institutional litigant. See INSTITUTIONAL LITIGANT.
self-represented litigant. See PRO SE.
vexatious litigant. A litigant who repeatedly files frivo
low; lawsuits. _ Many jurisdictions have statutes or
local rules requiring a vexatious litigant to obtain
the court's permission to file any further lawsuits or
pleadings. The litigant may also be subject to sanc
tions. [Cases: Action G.'=:c 13; Injunction (;::::>26(4),
26(5).] litis contestatio
litigation, n. 07c) 1. The process ofcarrying on a lawsuit
<the attorney advised his client to make a generous set
tlement offer in order to avoid litigation>. 2. A lawsuit
itself <several litigations pending before the court>.
litigate, vb. -litigatory, litigational, adj.
complex litigation. Litigation involving several parties
who are separately represented, and usu. involving
multifarious factual and legal issues.
"What exactly is 'complex litigation'? The problem is that
no one really knows -or, more accurately perhaps, various
definitions don't agree. Complex civil litigation has an
'Iknow-itwhen-I-see-it' quality. Nearly everyone agrees
that matters like the massive asbestos litigation, the AT&T
antitrust suit, or the remedial phase of a school desegrega
tion case are complex. But trying to find a common thread
that both describes these cases and distinguishes them
from the run-of-themill car crash is difficult." Jay Tidmarsh
& Roger H. Transgrud, Complex Litigation 1 (2002).
litigation costs. See COST (3).
litigation hold. See HOLD.
litigation-hold letter. A writing that orders the segre
gation and retention of certain documents and data
that are or may be relevant to a threatened or pending
litigation or an official investigation.
internal litigation-hold letter. A litigation-hold letter
sent by a company, directly or through its attorneys,
to its own employees.
litigation privilege. See PRIVILEGE (1).
litigator. (16c) 1. A trial lawyer. 2. A lawyer who prepares
cases for trial, as by conducting discovery and pretrial
motions, trying cases, and handling appeals. 3. Archaic.
A party to a lawsuit; a litigant.
litigious (li-tij-<ls), adj. (14c) 1. Prone to legal disputes;
contentious <our litigious society>. 2. Archaic. Of
or relating to the subject of a lawsuit <the litigious
property>. 3. Archaic. Ofor relating to lawsuits; litiga
tory <they couldn't settle the litigious dispute>. liti
giousness, litigiosity (li-tij-ee-os<l-tee), n .
litigious right. Civil law. A right that cannot be exer
cised without first being determined in a lawsuit. La.
Civ. Code art. 2652. -Ifthe right is sold, it must be in
litigation at the time ofsale to be considered a litigious
right.
litis aestimatio (b-tis es-t<l-may-shee-oh). [Latin] Roman
law. The judicial estimate of the measure ofdamages.
litis contestatio (II-tis kon-tes-tay-shee-oh). [Latin] 1.
Roman law. The final agreement ofthe parties to a suit
on the formula the praetor would issue to the judex.
Also termed contestatio litis. See FORMULA.
"Both parties being present, or represented, before the
praetor, the plaintiff stated the nature of his claim and
asked for an action. It lay in the discretion of the praetor
to give or to refuse it. ... If, in the event, the praetor
refused any action at ali, or any action which the plaintiff
was willing to accept, the matter was at an end .... If.
on the other hand, subject to the direction and approval
of the praetor, the parties agreed upon the issues to be
referred ... [a] document framed in identical terms was
issued to the judex by the praetor as his authority to act.
This ceremonial in which three persons concurred (plain

tiff, defendant, praetor) was the litis contestatio." RoW. Lee,
The Elements of Roman Law 179-80 (4th ed. 1956).
2. Hist. A contested point in a lawsuit; a litigable issue
developed by the litigants' alternating statements. 3.
CONTESTATION OF SUIT.
litis denuntiatio (II-tis da-n;:m-s[h]ee-ay-shee-oh), n.
[Latin] Civil law. The process by which a land purchaser,
sued for possession of the land by a third party, notified
the land seller and demanded aid in defending the suit
under the seller's warranty oftitle. -Also spelled litis
denUllciatio. Cf. LITEM DENUNTIARE.
litis dominium (II-tis da-min-ee-am), 11. [Latin] See
DOMINUS LITIS.
litis ordinatio (II-tis or-di-nay-shee-oh). [Latin "the
order or regulation of a lawsuit" j Scots law. The form
under which a lawsuit is conducted.
litispendence (lI-tis-pen-dants). Archaic. The time
during which a lawsuit is pending.
litteris obligatio (lit-"r-is ob-ld-gay-shee-oh). [Latin]
Romall law. An obligation arising from formal, written
entries in account books; an obligation arising from a
literal contract. See literal contract under CONTRACT.
Little FTC Act. See UNFAIR TRADE PRACTICES AND
CONSUMER PROTECTION LAW.
littoral (lit-"r-al), adj. (17c) Ofor relating to the coast or
shore ofan ocean, sea, or lake <the littoral right to limit
others' consumption of the water>. Cf. RIPARIAN.
littoral, n.
tittus maris (lit-as mar-is) [Law Latin "shore ofthe sea"]
1. Ordinary tides or neap tides that occur between the
full moon and dark ofthe moon. 2. The shore between
the normal high-water and low-water marks.
litura (li-t[y)oor-<:l), n. [Latin] Roman law. A blot or
erasure in a will or other instrument.
livelihood. (ISc) A means ofsupporting one's existence,
esp. financially.
livelode. Archaic. Livelihood; maintenance. -Also
termed lifelode.
livery (liv-a-ree or liv-ree). (1Sc) 1. The delivery of the
possession of real property. Cf. DELIVERY. 2. Hist.
An heir's writ, upon reaching the age of majority, to
obtain seisin ofhis lands from the king. 3. The boarding
and care of horses for a fee. 4. A business that rents
vehicles.
livery in chivalry. Hist. The delivery ofpossession ofreal
property from a guardian to a ward in chivalry when
the ward reached majority.
livery office. An office designated for the delivery of
lands.
livery of seisin. Hist. The ceremony by which a grantor
conveyed land to a grantee . Livery ofseisin involved
either (1) going on the land and having the grantor sym
bolically deliver possession of the land to the grantee
by handing over a twig, a clod of dirt, or a piece of
turf (called livery in deed) or (2) going within Sight of
the land and having the grantor tell the grantee that possession was being given, followed by the grantee's
entering the land (called livery ill law). See INVESTI
TURE; SEISIN. [Cases: Deeds <8=>21.J
"[WJe may now pause to wonder how transfer of these
potentially infinite interests was accomplished. Without a
modern system of land records, it would be desirable that
the transfer be effected with sufficient ceremony not only
to mark itself indelibly in the memories of the participants,
but also to give notice to interested persons such as the
mesne lord above the transferor. The central idea was to
make ritual livery (meaning 'delivery,' from the Old French
livrer) of seisin (meaning, roughly, 'possession,' from the
Old French saisir or seisir). The transferor and transferee
would go to the land to be transferred, and the transferor
would then hand to the transferee a lump of soil or a twig
from a tree all the while intoning the appropriate words
of grant, together with the magical words 'and his heirs'
if the interest transferred was to be a potentially infinite
one." Thomas F. Bergin & Paul G. Haskell, Preface to Estates
in Land and Future Interests 10-11 (2d ed. 1984).
lives in being. See LIFE IN BEING.
livestock, 11. (18c) Domestic animals and fowls that (1) are
kept for profit or pleasure, (2) can normally be confined
within boundaries without seriously impairing their
utility, and (3) do not normally intrude on others' land
in such a way as to harm the land or growing crops.
Animals <8=> 1.5(5).


' land
in such a way as to harm the land or growing crops.
Animals <8=> 1.5(5).)
live storage. The storage of cars in active daily use, rather
than cars put away for an extended period . A garage
owner's responsibility sometimes depends on whether a
car is in live or dead storage. Cf. DEAD STORAGE. [Cases:
Automobiles <8=>370.]
live thalweg. See THALWEG.
living, n. One's source ofmonetary support or resources;
esp., one's employment.
living separate and apart. (ISe) Of spouses) living
away from each other, along with at least one spouse's
intent to dissolve the marriage . One basis for no-fault
divorce in many states exists if the spouses have lived
apart for a specified period. -Sometimes shortened to
separate and apart. [Cases: Divorce 37; Husband
and Wife <8=>272(1).)
living-together agreement. See COHABITATION AGREE
MENT.
living trust. See inter vivos trust under TRUST.
living will. (1972) An instrument, signed with the for
malities statutorily required for a will, by which a
person directs that his or her life not be artificially pro
longed by extraordinary measures when there is no rea
sonable expectation ofrecovery from extreme physical
or mental disability . Most states have living-will leg
isiation. -Also termed declaration ofa desire for a
natural death; directive to physicians. See NATURAL
DEATH ACT; UNIFORM HEALTH-CARE DECISION ACT. Cf.
ADVANCE DIRECTIVE (1), (2); INSTRUCTION DIRECTIVE.
[Cases: Health <8=>916.J
L.J. abbr.!. Law Judge. 2. LAW JOURNAL. 3. LORD JUSTICE
OF APPEAL.
L.JJ. abbr. Lords justices. See LORD JUSTICE OF APPEAL.
L.L. abbr. LAW LATI~.

L.Lat. abbr. LAW LATIN.
LL.B. abbr. Bachelor of Laws. -This was formerly the law
degree ordinarily conferred by American law schools.
It is still the normal degree in British law schools. Cf.
JURIS DOCTOR.
L.L.c. See limited-liability company under COMPANY.
LL.D. abbr. DOCTOR OF LAWS.
LL.J. abbr. Lords justices. See LORD JUSTICE OF APPEAL.
LL.M. abbr. MASTER OF LAWS.
Lloyd's. See LLOYD'S OF LONDON.
Lloyd's association. See LLOYD'S UNDERWRITERS.
Lloyd's bond. See BOND (3).
Lloyd's insurance. See INSURANCE.
Lloyd's of London. Insurance.!. A London insurance
mart where individual underwriters gather to quote
rates and write insurance on a wide variety of risks.
2. A voluntary association of merchants, shipowners,
underwriters, and brokers formed not to write policies
but instead to issue a notice of an endeavor to members
who may individually underwrite a policy by assuming
shares ofthe total risk of insuring a client. _ The names
of the bound underwriters and the attorney-in-fact
appear on the policy. Also termed Lloyd's; London
Lloyd's. [Cases: Insurance ~1220.]
"[Ilt is not the corporation of Lloyd's which undertakes
insurance risks and enters into policies of insurance; that
is done by the individual members of Lloyd's, acting usually
in groups or 'syndicates,' which are not partnerships or
companies but merely fortuitous aggregations of, say.
five, ten, or more members represented in common by
one underwriting agent having power to bind them each
individually and separately to contracts of insurance. These
members are frequently referred to as 'names'; and their
agent is said to 'write' for them. If, as is commonly the
case, he also is a member of Lloyd's, then he will 'write'
for himself, too." 2 Stephen's Commentaries on the Laws of
Eng/and 237 (L Crispin Warmington ed., 21st ed. 1950).
Lloyd's underwriters. An unincorporated association
of underwriters who, under a common name, engage
in the insurance business through an attorney-in-fact
having authority to obligate the underwriters severally,
within specified limits, on insurance contracts that the
attorney makes or issues in the common name. Also
termed Lloyd's association; American Lloyd's. [Cases:
Insurance'C=> 1220.]
L.L.P. See limited-liability partnership under PARTNER
SHIP.
load, n. An amount added to a security's price or to an
insurance premium in order to cover the sales commis
sion and expenses <the mutual fund had a high front
end load>. -Also termed sales load; acquisition cost.
load factor. 1. The ratio of a utility customer's usage
levels during a given period compared to the custom
er's demand during peak periods. [Cases: Electricity
(':::::;, 1l.3.) 2. An analysis of the number of passengers
on an airplane or other common carrier compared to
available capacity.
load fund. See MUTUAL FUND. loading. Insurance. An amount added to a life-insurance
premium to cover the insurer's business expenses and
contingencies. -Also termed expense loading. See
gross premium (1) under PREMIUM (1). [Cases: Insur
ance ~2000, 2005.]
load line. Maritime law. 1. The depth to which a safely
loaded ship will sink in salt water. 2. One of a set of
graduated marks on the side of a ship, indicating the
depth to which the ship can be loaded in varying waters
(such as salt water or freshwater) and weather condi
tions. _ Load lines must, by law in most maritime coun
tries, be cut and painted amidships. -Also termed (in
sense 2) load-line marks; Plimsoll marks.
"The interest of shipowners led them, in early times, to load
vessels to a point beyond safety; the greater the weight
of the vessel's load, of course, the lower she rides in the
water, and the more vulnerable she is to heavy seas. Many
seamen consequently lost their lives. Britain led the way
in establishing standards of depth in the water believed to
be safe; Samuel Plimsoll, M.P. was the moving spirit, and
gave his name to the Plimsoli mark, now seen on the side
of all large vessels, which marks the limits of safety for
different seas and seasons. Since 1929, the United States
has made mandatory the placing of and compliance with
load line marks ...." Grant Gilmore & Charles L. Black Jr.,
The Law ofAdmiralty  11-12, at 987 (2d ed. 1975).
loadmanage. Hist. l. The fee paid to loadsmen, who sail
in small vessels acting as pilots for larger ships. 2. The
hiring of a pilot for a vessel. 3. A pilot's or loadsman's
skill. -Also spelled lodemanage; lode manage.
loadsman. Hist. 1. A person who directs a ship's course
from a small boat traveling in front of the larger ship
rather than from the ship itself. -The loadsmen had a
monopoly on piloting in the cinque ports. See CINQUE
PORTS. 2. A person who took the ship to a berth after a
pilot had brought it into port. Also spelled loadman;
lodeman; lodesman.
loan, n. (12c) 1. An act oflending; a grant of something
for temporary use <Turner gave the laptop as a loan,
not a gift>. [Cases: Contracts ~194.] 2. A thing lent
for the borrower's temporary use; esp., a sum ofmoney
lent at interest <Hull applied for a car loan>.
accommodation loan. (1834) A loan for which the
lender receives no consideration in return. See
ACCOMMODATION.
add-on loan. (1972) A loan in which the interest
is calculated at the stated rate for the loan agree
ment's full term for the full principal amount, and
then the interest is added to the principal before
installment payments are calculated, resulting in an
interest amount higher than if it were calculated on
the monthly unpaid balance. -Consumer loans are
typically add-on loans. -Also termed contract loan.
See add-on interest under INTEREST (3).
amortized loan. (1930) A loan calling for periodic
payments that are applied first to interest and then
to principal, as provided by the terms of the note. See
AMORTIZATION (1).
back-to-back loan. A loan arrangement by which two
firms lend each other funds denominated in different

currencies for a specified period . The purpose is
usu. to protect against fluctuations in the currencies'
exchange rates.
balloon loan. An installment loan in which one or more
of the later repayments are much larger than earlier
payments; esp., a loan featuring a string ofpayments
that are too small to amortize the entire loan within
the loan period, coupled with a large final lump-sum
payment of the outstanding balance.
below-market loan. See interest-free loan.
bridge loan. A short-term loan that is used to cover
costs until more permanent financing is arranged or
to cover a portion of costs that are expected to be
covered by an imminent sale. Also termed bridge
financing; swing loan.
broker call loan. See call loan.
building loan. A type ofbridge loan used primarily for
erecting a building . The loan is typically advanced
in parts as work progresses and is used to pay the
contractor, subcontractors, and material suppliers.
Also termed construction loan. See interim financing
under FINANCING.
call loan. (1869) A loan for which the lender can
demand payment at any time, usu. with 24 hours'
notice, because there is no fixed maturity date.
Also termed broker call loan; demand loan. Cf. term
loan. [Cases: Bills and Notes ("::=>129(3).J
character loan. A loan made in reliance on the borrow
er's character and stable earnings . Character loans
are usu. secured by a mortgage or by other property,
but sometimes they are unsecured.
clearing loan. A loan made to a bond dealer pending
the sale ofa bond issue.
collateral loan. See secured loan.
commercial loan. (1875) A loan that a financial institu
tion gives to a business, generally for 30 to 90 days.
commodity loan. A loan secured by a commodity (such
as cotton or wool) in the form ofa warehouse receipt
or other negotiable instrument
consolidation loan. (JS75) A loan whose proceeds
are used to payoff other individual loans, thereby
creating a more manageable debt.
construction loan. See building loan.
consumer loan. (1957) A loan that is given to an indi
vidual for family, household, personal, or agricultural
purposes and that is generally governed by truth-in
lending statutes and regulations. [Cases: Consumer
Credit~L]
contract loan. See add-on loan.
Crown loan. Tax. An interest-free demand loan, usu.
from parent to child, in which the borrowed funds are
invested and the income from the investment is taxed
at the child's rate. eThis type ofloan is named for one
Harry Crown of Chicago, reputedly one of the first
persons to use it. See kiddie tax under TAX. day loan. A short-term loan to a broker to finance daily
transactions.
demand loan. See call loan.
discount loan. A loan in which interest is deducted in
advance, at the time the loan is made.
doorstep loan. A loan offered by a door-to-door solici
tor, usu. for home repairs at a high interest rate and
under misleading or fraudulent terms . The term is
used primarily in the United Kingdom.
GI loan. See veteran's loan.
home-equity loan. (1984) A line of bank credit given
to a homeowner, using as collateral the homeown
er's equity in the home. Often shortened to equity
loan. -Also termed home-equity line ofcredit. See
EQUITY (7).
installment loan. (1916) A loan that is to be repaid in
usu. equal portions over a specified period.
interest-free loan. (1946) Money loaned to a borrower
at no charge or, under the Internal Revenue Code,
with a charge that is lower than the market rate. IRC
(26 USCA)  7872. Also termed (in the IRC) below
market loan.
interest-only loan. A loan for which the borrower pays
only the interest on the principal balance ofthe loan
for a stated period, usu. a few years. e At the end of
the stated period, the principal balance is unchanged.
An interest-only loan features low initial payments
in return for Significantly larger payments later or a
balloon payment at the end ofthe term.
liar's loan. 1. A loan that involves no background
check and can be obtained by claiming that one
meets the lender's income and other requirements.
2. See no-doc loan (1). 3. See stated-income loan (1).
Cf. NINJA loan.
maritime loan. A loan providing that a lender will not
be repaid if the cargo is damaged or lost because ofa
navigational peril, but that the lender will be repaid
plus interest ifthe cargo arrives safely or is damaged
because of the carrier's negligence. -Also termed
marine loan.
mortgage loan. (1846) A loan secured by a mortgage
or deed of trust on real property. [Cases: Mortgages
14.]
NINJA loan. abbr. No-income, no-job, no-assets loan.
Cf. liar's loan (1); no-doc loan (1); stated-income loan
(1).
no-doc loan. 1. A loan for which a borrower provides
only minimal proof of ability to repay . The name
is short for "no documentation." 2. See liar's loan (1).
Cf. NINJA loan.
nonperforming loan. (1984) An outstanding loan that


(1).
Cf. NINJA loan.
nonperforming loan. (1984) An outstanding loan that
is not being repaid.
nonrecourse loan. (1941) A secured loan that allows the
lender to attach only the collateral, not the borrow
er's personal assets, if the loan is not repaid. [Cases:

Bills and Notes C=>44; Secured Transactions
240.]
participation loan. (1928) A loan issued by two or more
lenders. See LOAN PARTICIPATION. [Cases: Contracts
(;:-:194.J
policy loan. An insurer's loan to an insured, secured
by the policy's cash reserve. [Cases: Insurance
1868.]
precarious loan. 1. A loan that may be recalled at any
time. 2. A loan in danger of not being repaid.
premium loan. A loan made to an insured by the insurer
to enable the insured to pay further premiums . The
reserve value ofthe policy serves as collateraL [Cases:
Insurance (::::: 1868, 2037.]
recourse loan. A loan that allows the lender, if the
borrower defaults, not only to attach the collateral
but also to seek judgment against the borrower's (or
guarantor's) personal assets. [Cases: Secured Transac
tions C=>227, 240.]
revolver loan. (1985) A single loan that a debtor takes
out in lieu of several lines of credit or other loans
from various creditors, and that is subject to review
and approval at certain intervals . A revolver loan is
usu. taken out in an attempt to resolve problems with
creditors. Cf. revolving credit under CREDIT (4).
revolving loan. (1927) A loan that is renewed at
maturity.
scratch-and-dent loan. A loan made to a borrower who
was able to repay when the loan was made but has
since fallen behind on payments.
secured loan. (1862) A loan that is secured by property
or securities. -Also termed collateral loan.
short-term loan. (1902) A loan with a due date ofless
than one year, usu. evidenced by a note.
signature loan. An unsecured loan based solely on the
borrower's promise or signature . To obtain such a
loan, the borrower must usu. be highly creditwor
thy.
stated-income loan. 1. A loan extended to a borrower
who claimed a certain income but has not verified the
claim. 2. See liar's loan (1). Cf. NINJA loan.
subprime loan. A loan, esp. a mortgage or home-equity
loan, made to one whose financial condition and cred
itworthiness are poor, creating a high risk ofdefault.
 A subprime loan usu. has an adjustable interest rate
that is low at inception, to help a financially weak
borrower qualify, then rises over the life of the loan.
swing loan. See bridge loan.
term loan. A loan with a specified due date, usu. of
more than one year. -Such a loan typically cannot be
repaid before maturity without incurring a penalty.
Also termed time loan. Cf. call loan. [Cases: Bills and
Notes C=> 129(1).J
veteran's loan. A federally guaranteed loan extended to
armed-forces veterans for the purchase of a home.
Also written veterans' loan; veteran loan. Also termed VA loan; GIloan. [Cases: Armed Services
C=>108.]
loan, vb. To lend, esp. money.
loan-amortization schedule. (1958) A schedule that
divides each loan payment into an interest component
and a principal component . Typically, the interest
component begins as the largest part of each payment
and declines over time. See AMORTIZATION (1).
loan association. See SAVINGS-AND-LOAN ASSOCIA
TION.
loan broker. See BROKER.
loan-brokerage fee. See MORTGAGE DISCOUNT.
loan certificate. A certificate that a clearinghouse issues
to a borrowing bank in an amount equal to a specified
percentage of the value of the borrowing bank's col
lateral on deposit with the clearinghouse's loan com
mittee.
loan commitment. (1940) A lender's binding promise
to a borrower to lend a specified amount ofmoney at a
certain interest rate, usu. within a specified period and
for a specified purpose (such as buying real estate). See
MORTGAGE COMMITMENT. [Cases: Contracts Cr'J194.]
loaned employee. See borrowed employee under EM
PLOYEE.
loaned servant. See borrowed employee under EM
PLOYEE.
loan for consumption. (1840) An agreement by which
a lender delivers goods to a borrower who consumes
them and who is obligated to return goods ofthe same
quantity, type, and quality. [Cases: Contracts
194.]
loan for exchange. (1915) A contract by which a lender
delivers personal property to a borrower who agrees
to return similar property, usu. without compensation
for its use.
loan for use. (1837) An agreement by which a lender
delivers an asset to a borrower who must use it accord
ing to its normal function or according to the agree
ment, and who must return it when finished using it.
 No interest is charged.
loanland. Rist. A tenancy involving the loan ofland by
one person to another. Also spelled laenland. Cf.
BOOKLAND; FOLKLAND.
"Laenlands were loaned lands, that is, lands granted for
a period, either the life of the grantee or some longer
time such as three lives. In return the grantees per
formed services, usually of an agricultural nature, or
made payments in kind to their landlords. Laenlands, like
boclands, were usually held under a written instrument,
and they are therefore sometimes included in the bodands.
But strictly, laenland and bocland differed. Bocland, we
may say, was held directly as a result of a charter from the
king, whereas laenland was temporarily held by grant from
some great landlord." W.J.V. Windeyer, Lectures on Legal
History 28 (2d ed. 1949).
loan-origination fee. See FEE.
loan participation. (1934) The coming together
of multiple lenders to issue a large loan (called a

participation loan) to one borrower, thereby reducing
each lender's individual risk. [Cases: Contracts
194.]
loan ratio. See LOAN-TO-VALUE RATIO.
loan-receipt agreement. (1943) Torts. A settlement
agreement by which the defendant lends money to
the plaintiff interest-free, the plaintiff not being obli
gated to repay the loan unless he or she recovers money
from other tortfeasors responsible for the same injury.
[Cases: Compromise and Settlement Insurance
C'3524.]
loansharking, n. (1914) The practice oflending money
at excessive and esp. usurious rates, and often using
threats or extortion to enforce repayment. Also
termed extortionate credit transaction. loan-shark,
vb. loan shark, n.
loan society. English law. A club organized to collect
deposits from and make loans to industrial workers.
 The loan societies were forerunners ofthe American
savings-and-Ioan associations.
loan-to-valne ratio. The ratio, usu. expressed as a per
centage, between the amount of a mortgage loan and
the value of the property pledged as security for the
mortgage. For example, an $80,000 loan on property
worth $100,000 results in a loan-to-value ratio of
80% which is usu. the highest ratio that lenders will
agree to without requiring the debtor to buy mortgage
insurance. -Often shortened to LTV ratio. -Also
termed loan ratio. [Cases: Mortgages C:::)145.]
loan value. Insurance. 1. The maximum amount that
may be lent safely on property or life insurance without
jeopardizing the lender's need for protection from the
borrower's default. 2. The amount ofmoney an insured
can borrow against the cash value of his or her life
insurance policy. [Cases: Insurance C=c 1868.)
lobby, vb. (1837) 1. To talk with or curry favor with a
legislator, usu. repeatedly or frequently, in an attempt
to influence the legislator's vote <she routinely lobbies
for tort reform in the state legislature>. [Cases: Statutes
2. To support or oppose (a measure) by working
to influence a legislator's vote <the organization lobbied
the bill through the Senate>. 3. To try to influence (a
decision-maker) <the lawyer lobbied the judge for a
favorable ruling>. -lobbying, n. lobbyist, n.
lobbying act. (1948) A federal or state law governing the
conduct oflobbyists, usu. by requiring them to register
and file activity reports . An example is the Federal
Regulation ofLobbying Act, 12 USCA  261. [Cases:
Statutes C::::24.J
lobby vote. See VOTE (4).
local act. 1. See LOCAL LAW (1). 2. See LOCAL LAW (2).
local action. See ACTION (4).
local administrator. See ADMINISTRATOR (1).
local agency. See AGENCY (3).
local agent.!. See AGENT (2). 2. See special agent under
INSURANCE AGENT. local allegiance. See actual allegiance under ALLE
GIANCE.
local and special legislation. See LEGISLATION.
local assessment. See ASSESSMENT.
local bar association. See BAR ASSOCIATION.
local chattel. See CHATTEL.
local concern. (1833) An activity conducted by a munic
ipality in its proprietary capacity. [Cases: Municipal
Corporations C=c57.j
local counsel. See COUNSEL
local court. See COURT.
local custom. See CUSTOM.
local-exchange carrier. Telecommunications law.
An entity that provides telephone service, usu. on a
local basis, through a local-exchange network. 47
USCA  153(26). -Abbr. LEe. See LOCAL-EXCHANGE
NETWORK. [Cases: Telecommunications
local-exchange network. Telecommunications law.
A system for providing telephone service on a local
basis. A local-exchange network usu. consists of
such elements as switches, local loops, and transport
trunks, and capabilities such as billing databases and
operator services. Switches are pieces of equipment that
direct calls to the appropriate destination. Local loops
are the wires that connect telephones to the switches.
Transport trunks are the wires that carry calls from
switch to switch. All the elements ofa local-exchange
network are often referred to as a bundle, and there
are federal requirements that a local-exchange carrier
who controls a local-exchange network permit com
petition by selling some access, including unbundled
access, to its local-exchange network. 47 USCA  25I(c).
See LOCAL-EXCHANGE CARRIER; UNBUNDLING RULES.
[Cases: Telecommunications
local government. See GOVERNMENT.
local improvement. See IMPROVEMENT.
local-improvement assessment. See local assessment
under ASSESSMENT.
locality, n. (17c) 1. A definite region; vicinity; neighbor
hood; community. 2. Hist. Scots law. The land held by
a widow in usufruct under the terms of her marriage
contract.  If a widow has locality lands, she cannot
assert her statutory claim to a one-third share of her
husband's real property.
locality ofa lawsuit. (1939) The place where a court may
exercise judicial authority.
locality-plus test. Maritime law. The requirement that,
for a federal court to exercise admiralty tort jurisdic
tion, not only must the alleged wrong occur on naviga
ble waters, it must also relate to a traditional maritime
activity Executive let Aviation, Inc. v. Cleveland, 409
U.S. 249, 93 S.Ct. 493 (1972). Also termed locality
plus rule; maritime-connection doctrine. [Cases: Admi
ralty

1023
locality rule. 1. The doctrine that, in a professional~
malpractice suit, the standard ofcare applicable to the
professional's conduct is the reasonable care exercised
by similar professionals in the same vicinity and profes
sional community. [Cases: Health C::'620.]
"With respect to medical doctors (and sometimes dentists
and others), the standard of care has been further limited
by the so-called 'locality rule.' A physician historically was
required only to possess and apply the knowledge and use
the skill and care that is ordinarily used by reasonably well
qual ified physicians in the locality in which he practices,
or, usually, in 'similar localities: This frequently made it
difficult or impossible for a plaintiff to prove the appli
cable standard since other doctors in the same locality are
notoriously reluctant to testify against their professional
colleagues. However, with the advent of improved com
munication and continuing medical education, the reason
for the rule has abated, and today the trend is toward its
abolition." Edward j. Kionka, Torts in a Nutshell 270-71
(2d ed. 1992).
2. The doctrine that, in determining the appropriate
amount of attorney's fees to be awarded in a suit, the
proper basis is the rate charged by similar attorneys for
similar work in the vicinity. [Cases: Costs (;:::;:, 194.18;
Federal Civil Procedure (;:::;:,2737.4.]
locality test. Maritime law. The requirement that, for a
federal court to exercise admiralty tort jurisdiction,
the alleged wrong must have occurred on naVigable
waters. The test was replaced by the locality-plus test
in Executive let Aviation, Inc. v. Cleveland, 409 U.S.


was replaced by the locality-plus test
in Executive let Aviation, Inc. v. Cleveland, 409 U.S. 249,
93 S.Ct. 493 (1972). -Also termed locality rule. See
LOCALITY- PLUS TEST. [Cases: Admiralty C= 17.]
localization doctrine. The doctrine that a foreign cor
poration, by doing sufficient business in a state, will
subject itself to that state's laws. [Cases: Corporations
C~661.]
local law. 1. A statute that relates to or operates in a par
ticular locality rather than the entire state. 2. A statute
that applies to particular persons or things rather than
an entire class ofpersons or things. -Also termed (in
senses 1 & 2) local act; local statute. [Cases: Statutes
(;:::;:,76-104.) 3. The law ofa particular jurisdiction, as
opposed to the law of a foreign state. -Also termed
internal law. 4. Conflict oflaws. The body ofstandards,
principles, and rules -excluding conflict-of-Iaws
rules that the state courts apply to controversies
before them. Restatement (Second) ofConflict ofLaws
 4(1) (1971). [Cases: Action C:)17.]
local-law theory. Conflict of laws. The view that,
although a court ofthe forum recognizes and enforces
a local right (that is, one created under its own law), in
a foreign-element case it does not necessarily apply the
rule that would govern an analogous case of a purely
domestic character, but instead takes into account the
law of the foreign country by fashioning a local right
as nearly as possible upon the law of the country in
which the decisive facts have occurred . This theorv
is credited to Walter Wheeler Cook, who expounded it
in the first chapter ofhis Logical and Legal Bases ofthe
Conflict ofLaws (1949). [Cases: Action (;:::;:, 17.]
"Since the court of the forum adopts the view that the
chosen law would have taken not of the actual case, but locatio
of an equivalent domestic case, it does not necessarily
recognize the right that would have been vested in the
plaintiff according to that law .... It is scarcely deniable,
however, that this local law theory is little more than what a
learned writer has stigmatized as a sterile truism sterile
because it affords no basis for the systematic development
of private international law. To remind an English judge,
about to try a case containing a foreign element, that
whatever decision he gives he must enforce only the lex
fori, is a technical quibble that explains nothing and solves
nothing. It provides no guidance whatever upon the limits
within which he must have regard to the foreign law." G.c.
Cheshire, Private International Law 35 (6th ed. 1961).
local option. An option that allows a municipality or
other governmental unit to determine a particular
course of action without the specific approval of state
officials. Also termed local veto. Cf. HOME RULE.
[Cases: Intoxicating Liquors (;:'-;:>24-43; Municipal
Corporations (;:::;:,65_1
local receiver. See RECEIVER.
local rule. (1819) 1. A rule based on the phYSical condi
tions of a state and the character, customs, and beliefs
ofits people. [Cases: Federal Civil Procedure C::>25.]
2. A rule by which an individual court supplements
the procedural rules applying generally to all courts
within the jurisdiction . Local rules deal with a variety
ofmatters, such as requiring extra copies of motions
to be filed with the court or prohibiting the reading of
newspapers in the courtroom. Fed. R. Civ. P. 83. [Cases:
Courts (;:::;:,85; Federal Civil Procedure (;:::;:,25.]
local statute. 1. See LOCAL LAW (1). 2. See LOCAL LAW
(2).
local union. See UNION.
local usage. See USAGE.
local veto. See LOCAL OPTION.
locare (l,,-kair-ee), vb. [Latin] Roman law. To let or hire
out. See LOCATOR.
locare aliquid faciendum (la-kair-ee al-i-kwid fay
shee-en-dam). [Latin] Roman law. To contract to have
someone perform work for remuneration. Cf. CONDUC
ERE ALIQUID FACIENDUM.
locare aliquid utendum (la-kair-ee al-i-kwid yoo-ten
dam). [Latin] Roman law. To let something on hire for
the use ofthe lessee; to accept consideration for the use
of an object. Cf. CONDUCERE ALIQUID UTENDUM.
locarium (la-kair-ee-am), n. [Law Latin] Hist. Rent.
locatarius (loh-b-tair-ee-as), n. [Latin] Hist. A person
with whom something is depOSited; a depositee.
locatio (la-kay-shee-oh), n. [Latin] Roman & civil law.
Any contract by which the use of the thing bailed, or
the use ofthe labor or services, is agreed to be given for
a compensation . This type ofcontract benefits both
parties. -Also termed lease; hiring. Cf. ABLOCATION.
PI. locationes {la-kay-shee-oh-neez).
locatio conductio (la-kay-shee-oh kan-duk-shee-oh).
[Latin] Roman law. A letting for hire; speciE., a contract
by which one person agreed to give to another the use,
or the use and enjoyment, ofa thing or ofservices or
labor in return for remuneration, usu. money . In

Roman law, it covered a broad range ofcircumstances
in return for a merces or rent.
locatio custodiae (lil-kay-shee-oh kils-toh-dee-ee).
[Latin] Roman law. The hiring of care or service, as
when the bailee is to protect the thing bailed.
locatio mercium vehendarum. See locatio operis
mercium vehendarum.
locatio operarum (lil-kay-shee-oh 0p-il-rair-ilm).
[Latin "the letting of services"] Roman & civil law.
A contract ofemployment; specif., contract in which
someone, usu. a day laborer, hires out his services
for a specified price. -Also termed locatio operis
faciendi. Cf. REDEMPTIO OPERIS.
locatio operis faciendi (lil-kay-shee-oh 0p-il-ris fay
shee-en-dr). [Latin "the letting of a job to be done"]
Roman law. A contract by which someone hires a
contractor (conductor) to undertake work (e.g., to
build a home or teach a slave to read) on behalf of the
hirer. Sometimes shortened to locatio operis. See
locatio operaTum.
locatio operis mercium vehendarum (l;:l-kay-shee-oh
op-il-ris milr-shee-ilm vee-hiln-dair-ilm).ILatin "the
letting of the job of carrying goods"] Roman law. A
bailment in which goods are delivered to the bailee
for transport elsewhere, esp. by sea. Also termed
locatio mercium vehendarum.
locatio rei (lil-kay-shee-oh ree-I). [Latin "letting of a
thing"] Roman law. The hiring ofa thing for use, by
which the hirer gains the temporary use of the thing
for a fee.
"Locatio rei was the letting of a res for hire. Roman law
differed in several aspects from the relevant rules of
English law. Firstly, there was not in Roman law a funda
mental distinction between the hiring of personal property
and the lease of real property: locatio rei applied both
to land and movables. Secondly, in Roman law the hirer
did not obtain possession. Thirdly, the locatio was a mere
contract and even the tenant of land did not have a right to
be restored if he were [wrongfully] ejected, his sole remedy
being an action for breach of contract. Fourthly, the Roman
contract gave more consideration to the tenant or hirer
than does English law." G.W. Paton. Bailment in the Cammon
Law 53 (1952).
location. (l6c) 1. The specific place or position ofa person
or thing. 2. The act or process oflocating. 3. Real estate.
The designation ofthe boundaries ofa particular piece
ofland, either on the record or on the land itself. [Cases:
Boundaries ~7-9.]4. Mining law. The act ofappropri
ating a mining claim. Also termed mining location.
See MINING CLAIM. [Cases: Mines and Minerals
9-38.] 5. The claim so appropriated. 6. Civil law. A
contract for the temporary use of something for hire;
a leasing for hire. See LOCATIO.
location-damage clause. See SURFACE-DAMAGE CLAUSE.
locative calls (Iok-il-tiv). (1807) Property. In land descrip
tions, specific descriptions that fix the boundaries ofthe
land. Locative calls may be marks oflocation, land
marks, or other physical objects. Ifcalls in a description
conflict, locative calls control over those indicating a general area of a boundary. See CALL (5); DIRECTORY
CALLS. [Cases: Boundaries ~1-23.]
locator (loh-kay-tdr), n. [Latin] 1. Roman law. (usu. ital.)
One who lets out property or services for reward, or
who contracts to have another person (the conductor)
perform work for reward; a lessor or landlord. See CON
DucToR (2).
locator operarum, n. One who offers one's labor for
hire, esp. as a day laborer.
locator operas faciendi, n. One who employs contract
labor.
locator rei, n. A lessor or landlord.
2. One who is entitled to locate land or set the boundar
ies ofa mining claim.
locatum (lil-kay-tilm), n. [Latin] Hist. A hiring. See
BAILMENT.
Lochnerize (lok-nilI-Iz), vb. (1976) To examine and strike
down economic legislation under the guise ofenforc, ing the Due Process Clause, esp. in the manner of the
U.S. Supreme Court during the early 20th century .
The term takes its name from the decision in Lochner
v. New York, 198 U.S. 45, 25 S.Ct. 539 (1905), in which
the Court invalidated New York's maximum-hours law
for bakers. -Lochnerization, n.
lockbox. (1872) 1. A secure box, such as a post-office box,
strongbox, or safe-deposit box. 2. A facility offered by
a financial institution for quickly collecting and con
solidating checks and other funds from a party's cus
tomers.
lockdown. (1977) The temporary confinement of pris
oners in their cells during a state of heightened alert
caused by an escape, riot, or other emergency. [Cases:
Prisons ~233.]
Lockeanism. See LOCKEA~ LABOR THEORY.
Lockean labor theory. The philosopher John Locke's jus
tification of private property, based on the natural right
of one's ownership of one's own labor, and the right
to nature's common property to the extent that one's
labor can make use ofit. Locke's theory, from the fifth
chapter of his Second Treatise on Civil Government, is
often used to analyze the natural rights of inventors,
authors, and artists in their own creations. -Also
termed labor theory; Lockeanism. Cf. PERSONALITY
THEORY; UTILITARIANISM.
locked in, adj. 1. (Of a person) unable to sell appreciated
securities and realize the gain because ofliability for
capital gains taxes <my accountant advised me not to
sell the stock because I am locked in>. 2. (Of a price,
rate, etc.) staying the same for a given period <the 7%
mortgage rate is locked in for 30 days>.
locked-in rate. See lock rate under INTEREST RATE.
lockout. (1854) 1. An employer's withholding of work
and dosing of a business because of a labor dispute.
[Cases: Labor and Employment ~1392.]
defensive lockout. A lockout that is called to prevent
imminent and irreparable financial harm to the

1025 locus regit actum
company or to protect a legal right.  Defensive
lockouts were legal, but the U.S. Supreme Court abol
ished the distinction between defensive and offensive
lockouts in favor of a balancing test. American Ship
Bldg. Co. v. NLRB, 380 U.S. 300, 85 S.Ct. 955 (1965).
offensive lockout. A lockout called by management
to assert economic pressure on workers and thereby
gain a bargaining advantage over a union . Offensive
lockouts were illegal before the U.S. Supreme Court
abolished the legal distinction between offensive
and defensive lockouts in favor of a balancing test.
American Ship Bldg. Co. v. NLRB, 380 U.S. 300, 85
S.Ct. 955 (1965).
2. Loosely, an employee's refusal to work because the
employer unreasonably refuses to abide by an expired
employment contract while a new one is being negoti
ated. Cf. STRIKE; BOYCOTT; PICKETING.
lock rate. See INTEREST RATE.
lockup, n. 1. See JAIL. 2. See LOCKUP OPTION.
lockup agreement. Securities. A contract between an
underwriter and a corporation's insiders that prohibits
the insiders from selling any personal stockholdings for
a specified time after the corporation makes a public
offering of securities. Cf. MARKET-STANDOFF AGREE
MENT. [Cases: Corporations C=310(1).]
lockup option. A defense against a corporate takeover, in


[Cases: Corporations C=310(1).]
lockup option. A defense against a corporate takeover, in
which a friendly party is entitled to buy parts of a cor
poration for a set price when a person or group acquires
a certain percentage of the corporation's shares . An
agreement of this kind may be illegal, to the extent it is
not undertaken to serve the best interests of the share
holders. -Often shortened to lockup. [Cases: Corpo
rations C=312(5).]
loco parentis. See IN LOCO PARENTIS.
loco rerum immobilium (loh-koh reer-dm im-;J-bil
ee-dm). [Latin] Scots law. Treated as immovable things.
 The phrase appeared in reference to a determina
tion of whether certain items (such as shares of stock)
should be treated as movable or immovable property.
loco tutoris (loh-koh t[y]oo-tor-is). [Latin] Scots law. In
the place ofa tutor.
"The Court of Session is in the practice of appointing, on
application made for such appOintment, a factor loco tutoris
on the estates of pupils not having tutors. Such an appOint
ment places the factor in the same position towards the
pupil, both as regards his person and the administration of
his estate, as if he held the office by virtue of relationship
and was tutor-at law, or had received the appointment of
tutor from the pupil's father under his testamentary settle
ment, the only difference being that the office of a tutor
appointed by the Court is not gratuitous." John Trayner,
Trayner's Latin Maxims 336-37 (4th ed. 1894).
locum tenens (loh-bm tee-nenz or ten-;:lflz), n. [Law
Latin "holding the place"] Hist. A deputy; a substitute;
a representative.
locuples (lok-Yd-pleez), adj. [Latin] Civil law. Having
the means to pay any amount that the plaintiff might
recover. Also termed locuplete. locupletari cum damno alterius (lok-yuu-pld-tair-r bm
dam-noh al-teer-ee-as). [Latin] To be enriched through
the damage sustained by another.
locus (loh-k;ls). [Latin "place"] (l8c) Ihe place or position
where something is done or exists. Abbr. L. See
SITUS.
locus actus (Ioh-bs ak-tas). [Latin "place of the act"]
The place where an act was done; the place of perfor
mance.
locus contractus (loh-kas kan-trak-t;ls). [Latin "place of
the contract"] The place where a contract was made.
Cf. LEX LOCI CONTRACTUS. [Cases: Contracts
145.]
locus criminis (loh-kas krim-;l-nis), n. [Latin] The place
where a crime was committed.
locus delicti (loh-k;JS d;l-Iik-tr). [Latin "place of the
wrong"] The place where an offense was committed;
the place where the last event necessary to make the
actor liable occurred. Cf. LEX LOCI DELICTI. [Cases:
Torts C=103.]
"When a statute does not indicate where Congress con
sidered the place of committing the crime to be, the site
or locus delicti must be determined from the nature of the
crime and the location of the acts or omissions constituting
the offense." United States v. Clinton, 574 F.2d 464, 465
(9th (ir. 1978).
locus in quo (loh-k;ls in kwoh). [Latin "place in which"]
(ISc) The place where something is alleged to have
occurred.
locus partitus (loh-k;ls pahr-tI-t;ls), n. [Latin "a place
divided"] Hist. The act of dividing two towns or
counties to determine which ofthem contains the land
or place in question.
locus poenitentiae (loh-kas pen-a-ten-shee-ee). [Latin
"place of repentance") 1. A point at which it is not too
late for one to change one's legal position; the possi
bility of withdrawing from a contemplated course of
action, esp. a wrong, before being committed to it .
'The requirement of an overt act before conspirators can
be prosecuted and punished exists .. to provide a locus
poenitentiae an opportunity for the conspirators to
reconSider, terminate the agreement, and thereby avoid
punishment." People v. Zamora, 557 P.2d 75. 82 n.8 (Cal.
1976).
2. The opportunity to withdraw from a negotiation
before finally concluding the contract. [Cases: Con
tracts C=138(3).]
locus publicus (loh-k;ls p<lb-li-k;ls). [Latin) Roman law.
A public place.
"Locus publicus . A parcel of public land. It is property
of the Roman people and is protected by various inter
dicts ... against violation by private individuals who might
endanger its public character or its use by the people."
Adolf Berger, Encyclopedic Dictionary of Roman Low 568
(1953).
locus regit actum (loh-k;ls ree-jit ak-tam), n. [Latin "the
place rules the act"]lnt'llaw. The rule that a trans
action complying with the legal formalities of the
country where it is created will be considered valid

1026 locus reisitae
in the country where it is to be effective, even if that
country requires additional formalities.
locus rei sitae (loh-bs ree-I sl-tee), n. [Latin "place
where a thing is situated"] Civil law. The rule that the
place where the land is located is the proper forum in
a case involving real estate.
locus sigilli (loh-k<ls Si-jil-I), n. [Latin] The place of the
seal.  Today this phrase is almost always abbreviated
"L.S." These are the traditional letters appearing on
many notarial certificates to indicate where the notary
public's embossed seal should be placed. Ifa rubber
stamp seal is used, it should be placed near but not
over this abbreviation. See NOTARY SEAL. [Cases: Seals
"For some period in history seals were required to consist of
wax affixed to the parchment or paper on which the terms
of the instrument were written. The wax was required to
have an identifiable impression made upon it. Usually this
was made by a signet ring. In time when ordinary people,
who did not have signet rings, learned to read and write,
it was to be expected that substitutes for the traditional
seal would be accepted by the law. Thus, today it would be
generally accurate to say that a seal may consist of wax,
a gummed wafer, an impression on the paper, the word
'seal,' the letters 'L.5.' (locus sigitli) or even a pen scratch."
John D. Calamari &Joseph M. Perillo, The Lawo(Contracts
 73, at 296 (3d ed. 1987).
locus solutionis (loh-k<ls s<l-loo-shee-oh-nis). [Latin]
Rist. The place ofperformance.
locus standi (loh-k2s stan-dr or -dee). [Latin "place of
standing"] (1835) The right to bring an action or to be
heard in a given forum; STANDING.
lode, n. 1. MINERAL LODE. 2. LADE.
lode claim. See MINING CLAIM.
lodeman. See LOADSMAN.
lodemanage, n. See LOADMANAGE.
lodesman. See LOADSMAN.
lodestar. (14c) 1. A guiding star; an inspiration or
model. 2. A reasonable amount of attorney's fees in a
given case, usu. calculated by multiplying a reasonable
number ofhours worked by the prevailing hourly rate
in the community for similar work, and often consid
ering such additional factors as the degree ofskill and
difficulty involved in the case, the degree ofits urgency,
its novelty, and the like. Most statutes that authorize
an award ofattorney's fees use the lodestar method for
computing the award. [Cases: Costs (;:::::;,194.18; Federal
Civil Procedure (;=>2737.4.]
lodge. See FILE (1).
lodger. (16c) 1. A person who rents and occupies a room
in another's house. [Cases: Innkeepers (;=>8; Landlord
and Tenant 1.]2. A person who occupies a desig
nated area in another's house but acquires no property
interest in that area, which remains in the owner's legal
possession.
log, n. 1. See ARREST RECORD. 2. JOURNAL (1).
logan. See LAGAN. logbook. (I7c) 1. A ship's or aircraft's journal containing
an account ofeach trip, often with a history ofevents
during the voyage; JOURNAL (1). 2. Any journal or
record ofevents.
logia (loj-ee-<l), n. [Latin] Rist. A small house or
cottage.
logical-cause doctrine. (1980) The principle that, if the
plaintiff proves that an injury occurred and proves a
logical cause of it, a party desiring to defeat the claim
cannot succeed merely by showing that there is another
imaginable cause, but must also show that the alterna
tive cause is more probable than the cause shown by the
plaintiff. [Cases: Workers' Compensation (~1356.1
logical interpretation. See INTERPRETATION.
logical positivism. (1931) A philosophical system or
movement requiring that meaningful statements be
in principle verifiable. Cf. LEGAL POSITIVISM.
logical-relationship standard. (1976) Civil procedure.
A test applied to determine whether a defendant's
counterclaim is compulsory, by examining whether
both claims are based on the same operative facts or
whether those facts activate additional rights, other
wise dormant, for the defendant. One of the most
important factors considered is whether hearing the
claims together would promote judicial economy and
efficiency. Fed. R. Civ. P. 13(a). [Cases: Federal Civil
Procedure (;=>776; Set-off and Counterclaim (;=>60.]
"[Ulnder the fourth test --frequently referred to as the
'logical relationship' standard the principal consider
ation in determining whether a counterclaim is compul
sory rests on the efficiency or economy of trying the
counterclaim in the same litigation as the main claim. As
a result, the convenience of the court, rather than solely
the counterclaim's relationship to the facts or issues of
the opposing claim, is controlling. The hallmark of this
approach is flexibility. Although the fourth test has been
critiCized for being overly broad in scope and uncertain in
application, it has by far the widest acceptance among the
courts." Jack H. Friedenthal et aI., Civil Procedure  6.7, at
352 (2d ed. 1993).
logic bomb. Destructive or disruptive computer software
that is planted on a computer, server, or network and
waits until a certain time to activate itself.
logium (loj-ee-;}m), n. [Latin] Rist. A lodge, hovel, or
outhouse.
logographus (Iog-<l-graf-ds), n. [Latin fro Greek] Roman
law. A bookkeeper or public clerk.
logrolling, n. (1812) 1. The exchanging ofpolitical favors;
esp., the trading of votes among legislators to gain
support ofmeasures that are beneficial to each legisla
tor's constituency. 2. The legislative practice ofinclud
ing several propositions in one measure or proposed
constitutional amendment so that the legislature or
voters will pass all ofthem, even though these proposi
tions might not have passed ifthey had been submitted
separately. Many state constitutions have single-sub
ject clauses that prohibit this practice. [Cases: Constitu
tional Law (;=>9(1); Statutes (;=> 107.] -logroll, vb.
LOL abbr. LETTER OF INTENT.

lOitering, n. (14c) The criminal offense of remaining in
a certain place (such as a public street) for no apparent
reason. _ Loitering statutes are generally held to be
unconstitutionally vague. Cf. VAGRANCY. [Cases: Disor
derly Conduct (;=>122; Vagrancy (;::::, 1.] loiter, vb.
lollipop syndrome. (1986) Family law. A situation in
which one or both parents, often in a custody battle,
manipulate the child with gifts, fun, good times, and
minimal discipline in an attempt to win over the child.
See Disneyland parent under PARENT. Cf. RESCUE
SYNDROME.
Lombard law. A Germanic customary law based primar
ily on a code called the Edict of Rothar, published in
A.D. 643. Rothar was the King ofthe Lombards at the
time (A.D. 636-652), and his code (written in Latin) was
more complete than the Germanic leges barbarorum.
Also termed law ofLombardy; law ofLangobardi. Cf.
LEGES BARBARORUM.
London commodity option. An agreement to buy or
sell a futures contract for a commodity traded on the
London markets, for a particular price and within a
particular time.
London Interbank Offered Rate. A daily compilation by
the British Bankers Association ofthe rates that major
international banks charge each other for large-volume,
short-term loans ofEurodollars, with monthly maturity
rates calculated out to one year . These daily rates are
used as the underlying interest rates for derivative
contracts in currencies other than the euro. Abbr.
LIBOR. Cf. EURO INTERBANK OFFERED RATE.
London Lloyd's. See LLOYD'S OF LONDON.
Lone Pine order. A


ATE.
London Lloyd's. See LLOYD'S OF LONDON.
Lone Pine order. A case-management order in a toxic-tort
lawsuit involving many plaintiffs, establishing proce
dures and deadlines for discovery, including requiring
the plaintiffs to timely produce evidence and expert
opinions to substantiate each plaintiff's exposure to the
hazardous substance, the injury suffered, and the cause
of the injury. Lore v. Lone Pine Corp., No. L-33606-85
(N.J. Super. Ct. Nov. 18, 1986). -Although the Lone
Pine opinion is unreported, it has become famous for
the kind of case-management order involved, in part
because the plaintiffs' claims were dismissed for failure
to timely provide expert opinions. [Cases: Federal Civil
Procedure (;=> 1925.1; Pretrial Procedure (;::::,747).]
long, adj. 1. Holding a security or commodity in antici
pation ofa rise in price <a buyer long on pharmaceuti
cal stock>. 2. Ofor relating to a purchase ofsecurities
or commodities in anticipation ofrising prices <a long
position>. Cf. SHORT.
long, adv. By a long purchase; into or in a long position
<bought the wheat long>.
long account. See ACCOUNT.
longa manu (long-g~ man-yoo), adv. [Latin "with a long
hand"] Roman & civil law. Indirectly; by the longest
route. -This described the transfer of ownership by
pointing out, at some distance, the thing to the trans
feree and authorizing its taking. This could be done, for example, by handing over the keys at the door of a
warehouse, or by pointing out the boundaries ofland.
See CONSTITUTUM POSSESSORIUM. Cf. BREVI MANU.
long-arm, adj. Ot: relating to, or arising from a long-arm
statute dong-arm jurisdiction>. [Cases: Courts
12(2); Federal Courts (='76.1.]
long-arm jurisdiction. See JURISDICTION.
long-arm statute. (1951) A statute providing for jurisdic
tion over a nonresident defendant who has had contacts
with the territory where the statute is in effect.  Most
state long-arm statutes extend this jurisdiction to its
constitutionalli mits. -Also termed single-act statute.
See long-arm jurisdiction under JURISDICTION. [Cases:
Courts (=,12(2); Federal Courts
long-firm fraud. See FRAUD.
long-form bill oflading. See BILI. OF LADING.
longi temporis praescriptio (long-gI tem-p<:J-ris pri
skrip-shee-oh). [Latin] Roman law. The prescriptive
period after which a possessor ofproperty could defeat
any challenge to his title. See USUCAPTION.
Long Parliament. Hist. 1. The English Parliament of
Charles I meeting between 1640 and 1653, dissolved
by Oliver Cromwell in 1653, then recalled and finally
dissolved in 1660. 2. The English Parliament that met
between 1661 and 1678, after the restoration of the
monarchy. -This Parliament is sometimes called the
"Long Parliament of Charles II" to distinguish it from
that ofsense l.
long robe. Hist. The legal profession <gentlemen of the
long robe>. See ROBE.
long-run incremental cost. Antitrust. A cost thresh
old for determining whether predatory pricing has
occurred, consisting ofall costs that, over a several-year
period, would not be incurred ifthe product in question
were not offered . It differs from average variable cost
because it includes some costs that do not vary in the
short run but that do vary over a longer period, depend
ing on whether a particular product is offered. Abbr.
LRIC. Cf. average variable cost under COST (1).
Longshore and Harbor Workers' Compensation Act.
A federal law designed to provide workers' -compensa
tion benefits to persons, other than seamen, who work
in maritime occupations, esp. stevedoring and ship
service. 33 USCA  901-50. Abbr. LHWCA. [Cases:
Workers' Compensation 260,262,2085.]
"Employees who are engaged in maritimerelated activi
ties but who do not qualify as 'seamen' may be classified
as 'maritime workers' entitled to the benefits provided
by the Longshore and Harbor Workers' Compensation
Act .... Persons covered by the act, which has the attri
butes of the usual workers' compensation law, include (1)
employees injured on the Outer Continental Shelf in the
course of mineral exploration and production activities,
and (2) employees within American territorial waters who
fall within the Congressional definition of a 'maritime
worker,' and who are injured on 'naVigable waters'." Frank
L. Maraist, Admiralty in a Nutshell 44 (2d ed. 1988).
longshoreman. (1811) A maritime laborer who works
on the wharves in a port; esp., a person who loads and

1028 long-term capital gain
unloads ships. Cf. STEVEDORE. [Cases: Shipping
84.]
long-term capital gain. See CAPITAL GAIN.
long-term capital loss. See LOSS.
long-term debt. See DEBT.
long-term foster care. See FOSTER CARE.
long-term security. See SECURITY.
long title. See TITLE (3).
long ton. See TON.
look and feel. See TRADE DRESS.
look-and-feel protection. Copyright protection of the
images generated or revealed when one activates a
computer program. [Cases: Copyrights and Intellec
tual Property G=> 10.4.]
lookout, n. (17c) A careful, vigilant watching <the motor
ist's statutory duty of proper lookout>. [Cases: Automo
biles G=> 150; Collision (>=>77.]
look-through principle. (1993) Tax. A doctrine for allo
cating transfer-gains taxes on real estate by looking
beyond the entity possessing legal title to identify the
beneficial owners of the property. [Cases: Internal
Revenue G=>3071.]
loophole. (17c) An ambiguity, omission, or exception
(as in a law or other legal document) that provides a
way to avoid a rule without violating its literal require
ments; esp., a tax-code provision that allows a taxpayer
to legally avoid or reduce income taxes.
loopification, n. (1982) In critical legal studies, the
collapse of a legal distinction resulting when the two
ends of a continuum become so similar that they
become indistinguishable <it may be impossible to
distinguish "public" from "private" because of loopi
fication>. loopify, vb.
loose construction. See liberal construction under CON
STRUCTION.
loose constructionism. See liberal constructionism under
CONSTRUCTIONISM.
loose constructionist. See liberal constructionist under
CONSTRUCTIONIST.
looseleaf service. (1927) A type of lawbook having pages
that are periodically replaced with updated pages,
designed to cope with constant change and increas
ing bulk.
"The first loose leaf service covered the federal income
tax, and was published in 1913 shortly after the Federal
Income Tax Law of 1913 went into effect. It was followed in
1914 by a service reporting on the activities of the Federal
Trade Commission, which had just been established. The
loose leaf method was, therefore, first used as a means
of reporting new tax and business laws which were to be
subject to administrative interpretation .... These first
loose leaf services Were designed ... not to reprint just the
bare text of the revenue and commiSSion acts, but to follow
up and report each new development on these new laws as
it occurred." Arthur Sydney Beardsley, Legal Bibliography
and the Use ofLaw Books  185, at 313-14 (1937). loquela (l;l-kwee-l;l), n. [Law Latin "talk"] Hist. 1. The
oral discussions between the parties to a lawsuit leading
to the issue, now called the pleadings. 2. Settlement
discussions.
loquela sine die (l;l-kwee-l;l sl-nee dI-ee or sin-ay
dee-ay), n. [Law Latin] Rist. Indefinite postponement
ofan action.
lord. (bef. 12c) 1. A title of honor or nobility belong
ing properly to a baron but applied also to anyone who
attains the rank of a peer. Abbr. L. 2. (cap. & pl.)
HOUSE OF LORDS. 3. A property owner whose land is in
a tenant's possession; LANDLORD (l).
temporal lord (tem-p;l-r;ll). One of the English peers
(other than ecclesiastical) who sit in Parliament.
Lord Advocate. Scots law. An important political func
tionary in Scottish affairs who acts as the principal
Crown counsel in civil cases, the chief public prosecu
tor ofcrimes, and legal adviser to the Scottish govern
ment on matters ofScots law. Formerly also termed
King's advocate. Cf. ADVOCATE GENERAL.
lord-and-master rule. See HEAD-AND-MASTER RULE.
Lord Campbell's Act. 1. The 1846 English statute that
created a wrongful-death claim for the relatives of a
decedent when the decedent would have had a claim
ifhe or she had been merely injured and not killed .
Technically known as the Fatal Accidents Act of 1846,
this statute changed the earlier rule, under which
a tortfeasor who would have been liable to another
escaped liability if the victim died. Cf. WRONGFUL
DEATH ACTION.
"The common law not only denied a tort recovery for injury
once the tort victim had died, it also refused to recognize
any new and independent cause of action in the victim's
dependents or heirs for their own loss at his death ....
The result was that it was cheaper for the defendant to kill
the plaintiff than to injure him, and that the most grievous
of all injuries left the bereaved family of the victim, who
frequently were destitute, without a remedy. Since this was
intolerable, it was changed in England by the passage of
the Fatal Accidents Act of 1846, otherWise known as Lord
Campbell's Act, which has become a generic name for
similar statutes." Prosser and Keeton on the Law of Torts
 127, at 945 (W. Page Keeton ed., 5th ed. 1984).
2. An American state's wrongful-death statute pat
terned after the original English act.
Lord Chamberlain. The second officer of the royal
household in England, who serves as a peer, a privy
councilor, and a member ofthe ruling government.
Also termed Lord Chamberlain ofthe Household.
Lord Chancellor. The highest judicial officer in England.
 The Lord Chancellor sits as speaker of the House of
Lords, is a member of the Cabinet, and presides at
appellate judicial proceedings. Also termed Lord
High Chancellor; Keeper ofthe King's Conscience.
Lord Chief Justice of England. The chief judge of the
Queen's Bench Division of the High Court ofJustice.
 The Lord ChiefJustice also serves on the Court of
Appeal, and ranks second only to the Lord Chancellor
in the English judicial hierarchy. Formerly termed

1029
Chief Justice of England. Cf. CHIEF JUSTICE OF THE
COMMON PLEAS.
Lord Clerk Register. Scots law. The officer who, from
1288 to 1879, was keeper of the rolls of court and
records of Scotland. These functions were later dis
charged by the Keeper ofthe Registers ofScotland and
the Keeper of the Records of Scotland.
Lord Denman's Act. See DENMAN'S ACT (1).
Lord High Chancellor. See LORD CHANCELLOR.
Lord High Steward. Hist. The speaker pro tempore
and presiding officer in the House of Lords during a
criminal trial of a peer for a felony or for treason .
The privilege of peerage in criminal proceedings was
abolished in 1948.
Lord High Treasurer. Hist. An officer in charge of the
royal revenues and customs duties, and ofleasing the
Crown lands . The functions of the Lord High Trea
surer are now vested in the lords commissioners ofthe
treasury.
lord in gross. Hist. A lord holding the title not by virtue
ofa manor; a lord without a manor.
Lord Justice. See LORD JUSTICE OF APPEAL.
Lord Justice-Clerk. Scots law. The second highest judicial
officer in Scotland, historically with special responsibil
ity for criminal law . The Lord Justice-Clerk presides
over the Second Division of the Inner House of the
Court ofSession.
Lord Justice General. Scots law. The highest judicial
officer in Scotland, and head ofthe High Court of Jus
ticiary. The Lord Justice General also holds the office
of Lord President of the Court ofSession.
Lord Justice ofAppeal. A judge ofthe English Court of
AppeaL Often shortened to lord justice. -Abbr. L.J.
(or, in pI., either LL.J. or L.JJ.).
Lord Keeper. See KEEPER OF THE GREAT SEAL.
Lord Keeper of the Great Seal. See KEEPER OF THE
GREAT SEAL.
Lord Keeper ofthe Privy Seal. See LORD PRIVY SEAL.
Lord Langdale's Act. See WILLS ACT (2).
Lord Lieutenant. 1. An honorary officeholder who is the
Queen's representative in a county and the principal
military officer there, originally appointed to muster
the inhabitants to defend the country. 2. Hist. The
former viceroy ofthe Crown in Ireland.
Lord Lyndhurst's Act. See LYNDHURST'S ACT.
Lord Lyon King at Arms. Scots law. The monarch's rep
resentative who grants arms to suitable applicants,
oversees the use of armorial bearings, holds court to
determine rights to arms and chieftainship, and super
vises mess


the use of armorial bearings, holds court to
determine rights to arms and chieftainship, and super
vises messengers-at-arms.
Lord Mansfield's rule. The principle that neither spouse
may testify about whether the husband had access to
the wife at the time of a child's conception . In effect,
this rule which has been abandoned by most states loss
made it impossible to bastardize a child born during a
marriage. [Cases: Witnesses C=::oS7.]
Lord Mayor. 1. Hist. The chief officer of the corpora
tion of the city ofLondon, so called because the fourth
charter ofEdward IIIconferred on that officer the honor
ofhaving maces carried before him by the sergeants. 2.
The title of the principal magistrate of a city, the office
ofwhich has been conferred by letters patent.
lord mayor's court. See COURT.
Lord of Appeal. A member of the House of Lords, of
whom at least three must be present for the hearing
and determination of appeals, and including the Lord
Chancellor, the Lords of Appeal in Ordinary, and the
peers that have held high judicial offices, such as ex
chancellors and judges of the superior court in Great
Britain and Ireland.
Lord of Appeal in Ordinary. A person appointed and
salaried to aid the House of Lords in the hearing of
appeals. "These lords rank as barons for life, and sit
and vote in the House of Lords even after retirement.
Cf. LAW LORD.
Lord of Parliament. A member of the House ofLords.
Lord of Session. Scots law. Any judge of the Court of
Session. -Also termed Senator ofthe College ofJustice.
See COURT OF SESSION (1).
Lord Ordinary. Scots law. A judge ofthe Court ofSession,
sitting alone at first instance in the Outer House. See
COURT OF SESSION (1).
Lord President. Scots law. The highest judicial officer in
Scotland, heading the Court of Session and the First
Division ofthe Upper House . The Lord President also
holds the office of Lord Justice-General ofScotland.
Lord Privy Seal (priv-ee). English law. An officer who has
custody of the privy seal and who authenticates either
a state document before it passes to receive the Great
Seal or a document that does not require the Great Seal
because ofits minor importance . The Lord Privy Seal
has nominal official duties but is often made a member
of the British cabinet. Also termed Keeper of the
Privy Seal; Lord Keeper ofthe Privy Seal; Privy Seal.
Lords. See HOUSE OF LORDS.
Lord's Day Act. See BLUE LAW.
lordship. 1. Dominion. 2. An honorary title used for a
nobleman other than a duke. 3. A customary title for a
judge or some other public official.
Lords Marchers. See MARCHERS.
lord spirituaL An archbishop or bishop who is a member
of the House ofLords.
lord temporaL A House of Lords member who is not
an ecclesiastic.
Lord Tenterden's rule. See EJUSDEM GENERIS.
loser-pays rule. See ENGLISH RULE.
loss. (bef. 12c) 1. An undesirable outcome of a risk;
the disappearance or diminution ofvalue, usu. in an
unexpected or relatively unpredictable way . When

the loss is a decrease in value, the usual method ofcal
culating the loss is to ascertain the amount by which
a thing's original cost exceeds its later selling price. 2.
Tax. The excess of a property's adjusted value over the
amount realized from its sale or other disposition. IRC
(26 USCA)  1001. Also termed realized loss. [Cases:
Internal Revenue 3. Insurance. The amount
of financial detriment caused by an insured person's
death or an insured property's damage, for which the
insurer becomes liable. 4. The failure to maintain pos
session of a thing.
actual loss. (18c) A loss resulting from the real and
substantial destruction ofinsured property.
actual total loss. 1. See total loss. 2. Marine insurance.
The total loss of a vessel covered by an insurance
policy (1) by its real and substantive destruction, (2)
by injuries that destroy its existence as a distinct indi
vidual ofa particular class, (3) by its being reduced to
a wreck irretrievably beyond repair, or (4) by its being
placed beyond the insured's control and beyond the
insured's power of recovery. [Cases: Insurance
2235.]
business loss. See ordinary loss.
capital loss. (1921) The loss realized upon selling or
exchanging a capital asset. Cf. CAPITAL GAIN.
casualty loss. (1934) For tax purposes, the total or
partial destruction of an asset resulting from an
unexpected or unusual event, such as an automobile
accident or a tornado. lCases: Internal Revenue
3416; Taxation
consequential loss. (1829) A loss arising from the
results ofdamage rather than from the damage itself.
 A consequential loss is proximate when the natural
and probable effect ofthe wrongful conduct, under
the circumstances, is to set in operation the inter
vening cause from which the loss directly results.
When the loss is not the natural and probable effect
of the wrongful conduct, the loss is remote. -Also
termed indirect loss; consequential injury. Cf. direct
loss. [Cases: Damages (;:::J 15-23.]
constructive total loss. (1805) 1. Such serious damage
to the insured property that the cost ofrepairs would
exceed the value ofthe thing repaired. - A Iso termed
constructive los5. Insurance (;=::>2176. ] 2_
Marine underwriting. According to the traditional
American rule, such serious damage to the insured
property that the cost of repairs would exceed half
the value ofthe thing repaired. See total loss. [Cases:
Insurance (;::.)2236.]
direct loss. (ISc) A loss that results immediately and
proximately from an event. Cf. consequential loss.
disaster loss. A casualty loss sustained in a geographic
area that the President deSignates as a disaster area.
 It may be treated as having occurred during the
previous tax year so that a victim may receive imme
diate tax benefits.
economic loss. See ECONOMIC LOSS. extraordinary loss. (17c) A loss that is both unusual
and infrequent, such as a loss resulting from a natural
disaster.
general average loss. Marine underwriting. A loss at
sea usu. incurred when cargo is thrown overboard to
save the ship; a loss due to the voluntary and inten
tional sacrifice ofpart ofa venture (usu. cargo) to save
the rest of the venture from imminent periL. Such
a loss is borne equally by all the interests concerned
in the venture. See AVERAGE (3). [Cases: Insurance
(;=::>2240.]
hobby loss. A nondeductible loss arising from a personal
hobby, as contrasted with an activity engaged in for
profit. The law generally presumes that an activity
is engaged in for profit ifprofits are earned during at
least three ofthe last five IRC (26 USCA)  183.
[Cases: Internal Revenue 3397.]
indirect loss. See consequential loss.
long-term capital loss. A loss on a capital asset held for
an extended period, usu. at least 12 months. [Cases:
Internal Revenue (;=::>3260.]
net loss. The excess of all expenses and losses over all
revenues and gains.
net operating loss. (1921) The excess of operating
expenses over revenues, the amount of which can
be deducted from gross income if other deductions
do not exceed gross income. Abbr. NOL. [Cases:
Internal Revenue (;::> 3399.]
ordinary loss. (1850) Tax. A loss incurred from the
sale or exchange of an item that is used in a trade
or business. The loss is deductible from ordinary
income, and thus is more beneficial to the taxpayer
than a capital loss. Also termed business loss.
out-aI-pocket loss. (1921) The difference between the
value ofwhat the buyer paid and the market value of
what was received in return. In breach-of-contract
cases, out-of-pocket loss is used to measure restitution
damages. [Cases: Damages Fraud (;=::>59(3).]
paper loss. (1924) A loss that is realized only by selling
something (such as a security) that has decreased in
market value. Also termed unrealized loss.
partial loss. A loss of part of the insured property;
damage not to a total loss. Cf. total loss.
[Cases: Insurance
particular average loss. Marine underwriting. A loss
suffered by and borne alone by particular interests
in a maritime venture. Such a loss is usu. a partial
loss. [Cases: Insurance
passive loss. A loss, with limited tax deductibility, from
an activity in which the taxpayer does not materially
participate, from a rental activity, or from a tax-shel
ter activity. [Cases: Internal Revenue (;:::>3418.]
pecuniary loss. A loss ofmoney or ofsomething having
monetary value. [Cases: Damages
product-liability loss. The total ofa taxpayer's product
liability expenses up to the amount ofthe taxpayer's

1031 lost earning capacity
net operating loss. IRC (26 USCA)  172(j)(1). -Abbr.
PLL. See net operating loss. [Cases: Internal Revenue
(:='3438.]
progressive loss. 1. Loss that spreads or becomes more
expensive to repair over time. 2. Late-manifesting
harm that is related to an event that caused immedi
ate harm, worsens over time, and is not catalyzed by
any additional causative agent. - A classic example is
asbestosis, a disease that manifests long after exposure
to asbestos fibers.
recognized loss. Tax. The portion ofa loss that is subject
to income taxation. IRC (26 C'SCA)  1001(c).
salvage loss. 1. Generally, a loss that presumptively
would have been a total loss if certain services had not
been rendered. 2. Marine underwriting. The difference
between the salvage value, less the salvage charges,
and the original value ofthe insured property. [Cases:
Insurance C=2233.]
total loss. (1924) The complete destruction of insured
property so that nothing of value remains and the
subject matter no longer exists in its original form.
Generally, a loss is total if, after the damage occurs, no
substantial remnant remains standing that a reason
ably prudent uninsured owner, desiring to rebuild,
would use as a basis to restore the property to its
original condition. Also termed actual total loss.
Cf. partial loss; constructive total loss. [Cases: Insur
ance C=:>2175.]
unrealized loss. See paper loss.
loss carryback. See CARRYBACK.
loss carryforward. See CARRYOVER.
loss carryover. See CARRYOVER.
loss insurance. See INSURANCE.
loss leader. (1922) A good or commodity sold at a very
low price, usu. below cost, to attract customers to buy
other items. -Sometimes shortened to leader. See BAIT
AND SWITCH.
loss-of-bargain damages. See benefit-of-the-bargain
damages under DAMAGES.
loss-of-bargain rule. (1903) The doctrine that damages
for a breach ofa contract should put the injured party
in the position it would have been in ifboth parties had
performed their contractual duties. [Cases: Damages
C=:> 117, 120(1).]
loss-of-chance doctrine. (1987) A rule in some states
providing a claim against a doctor who has engaged in
medical malpractice that, although it does not result in
a particular injury, decreases or eliminates the chance
ofsurviving or recovering from the preexisting condi
tion for which the doctor was consulted. Also termed
lost-chance doctrine; increased-risk-of-harm doctrine.
[Cases: Health C=833.]
loss ofconsortium (k;m-sor-shee-am). (1878) 1. A loss of
the benefits that one spouse is entitled to receive from
the other, including companionship, cooperation, aid,
affection, and sexual relations. _ Loss of consortium can be recoverable as damages from a tortfeasor in a
personal-injury or wrongful-death action. Originally,
only the husband could sue for loss ofconsortium. But
in 1950, nearly a century after the enactment of the
married women's property acts, a wife's action for neg
ligent impairment of consortium was first recognized.
Hitaffer v. Argonne Co., 183 F.2d 811 (D.C. Cir. 1950).
Today 48 states and the District ofColumbia recognize
both a husband's and a wife's right to sue for loss ofcon
sortium (Utah and Virginia do not). [Cases: Husband
and Wife C~209(3, 4).] 2. A similar loss of benefits
that one is entitled to receive from a parent or child.
See CONSORTIUM.
loss-of-use exclusion. See failure-to-perform exclusion
under EXCLUSION (3).
loss-payable clause. Insurance. An insurance-policy
provision that authorizes the payment of proceeds to
someone other than the named insured, esp. to someone
who has a security interest in the insured property. _
Typically, a loss-payable clause either designates the
person as a beneficiary ofthe proceeds or assigns to the
person a claim against the insurer, but the clause usu.
does not treat the person as an additional insured. See
MORTGAGE CLAUSE. [Cases: Insurance C=:>3450.]
loss payee. Insurance. A person or entity named in an
insurance policy (under a loss-payable clause) to be
paid ifthe insured property suffers a loss. [Cases: Insur
ance C:=-345


clause) to be
paid ifthe insured property suffers a loss. [Cases: Insur
ance C:=-3450.]
loss ratio. 1. Insurance. The ratio between premiums
paid and losses incurred during a given period. [Cases:
Insurance C=1540.J 2. A bank's loan losses compared
to its loan assets; a business's receivable losses compared
to its receivables.
loss reserve. See RESERVE.
lost, adj. (l6c) 1. (Of property) beyond the possession and
custody ofits owner and not locatable by diligent search
<lost at sea> <lost papers>. 2. (Of a person) missing
<lost child>. 3. Parliamentary law. (Of a motion)
rejected; not adopted <the motion is lost>.
lost boundary. See BOUNDARY.
lost-chance doctrine. (1985) 1. LOSS-OF-CHANCE
DOCTRINE. 2. A rule permitting a claim, in limited
circumstances, against someone who fails to come to
the aid ofa person who is in imminent danger ofbeing
injured or killed. Cf. GOOD SAMARITAN DOCTRINE.
lost corner. See CORNER.
lost earning capacity. (1908) A person's diminished
earning power resulting from an injury. -This impair
ment is recoverable as an element ofdamages in a tort
action. Cf. lost earnings under EARNINGS. (Cases:
Damages C'::::" 38.]
"To some extent the phrases 'loss of earnings' and 'loss
of earning capacity' are used interchangeably. But the pre'
ferred view is that they are different concepts. The former
covers real loss which can be proved at the trial; the latter
covers loss of the chances of getting equivalent work in
the future." R.F.V. Heuston, Salmond on the Law of Torts
572 (17th ed. 1977).

1032 lost earnings
lost earnings. See EARNINGS.
lost-expectation damages. See expectation damages
under DAMAGES.
lost or not lost. Marine insurance. A policy provision
fixing the effective date of the policy to a time preced
ing the policy date, even ifthe insured ship has already
been lost when the policy is executed, as long as neither
party then knows, or has means of knowing, that the
ship has been lost.
lost profits. 1. Contracts. A measure of damages that
allows a seller to collect the profits that would have been
made on the sale if the buyer had not breached. VCC
 2-708(2). [Cases: Damages Sales (::::::>384(1).]
2. Patents. A measure ofdamages set by estimating the
net amount lost by a plaintiff-inventor because of the
infringing defendant's actions. -The plaintiff can ask
for a lost-profits recovery by showing that the patent is
in demand, that the plaintiff is able to meet the demand,
and that there are no acceptable non infringing alter
natives on the market. Also termed (redundantly)
lost-profits damages. [Cases: Patents (::::::>318.]
lost-profits damages. See LOST PROFITS (1).
lost property. See PROPERTY.
lost-sales-of-unpatented-items theory. Patents. A
theory of lost-profits remedy whereby compensation
is sought for sales of unpatented items that the plaintiff
would have sold along with patented items but for the
defendant's infringement.
lost-volume seller. (1974) A seller of goods who, after a
buyer has breached a sales contract, resells the goods
to a different buyer who would have bought identical
goods from the seller's inventory even if the original
buyer had not breached. -Such a seller is entitled to
lost profits, rather than contract price less market price,
as damages from the original buyer's breach. VCC
 2-708(2). [Cases: Sales (::::::>384(7).]
lost will. See WILL.
lot. (bef. 12c) 1. A tract ofland, esp. one having specific
boundaries or being used for a given purpose.
minimum lot. A lot that has the least amount ofsquare
footage allowed a local zoning law. [Cases: Zoning
and Planning
nonconforming lot. A previously lawful lot that now
violates an amended or newly adopted zoning ordi
nance. [Cases: Zoning and Planning C=)321.]
2. An article that is the subject of a separate sale, lease,
or delivery, whether or not it is sufficient to perform the
contract. VCC  2-105(5); 2A-103(l)(s). 3. A speCified
number of shares or a quantity ofa commodity
designated for trading.
odd lot. A number of shares ofstock or the value of a
bond that is less than a round lot.
round lot. The established unit of trading for stocks
and bonds. _ A round lot of stock is usu. 100 shares,
and a round lot ofbonds is usu. $1,000 or $5,000 par
value. Also termed even lot; board lot. lot and scot. Hist. A collection of duties paid by voters
before voting in certain cities and boroughs.
lot line. (1829) A land boundary that separates one tract
from another <from the street to the alley, the lot line
is 150 feet>.
lottery. (l6c) A method of raising revenues, esp. state
government revenues, by selling tickets and giving
prizes (usu. cash prizes) to those who hold tickets with
winning numbers that are drawn at random. -Also
termed lotto. [Cases: Lotteries
Dutch lottery. A lottery in which tickets are drawn
from classes, and the number and value ofprizes are
fixed and increasing with each class. _ This type of
lottery originated in Holland in the 16th century.
Also termed class lottery.
Genoese lottery (jen-oh-eez or -ees). A lottery in which,
out of90 consecutive numbers, five are drawn by lot,
each player wagering that one or more ofthe numbers
they have chosen will be drawn . This type oflottery
originated in Genoa in about 1530. Also termed
number lottery; numerical lottery.
love day. See DAY.
Lovely claim. Hist. Property. An entitlement to settle
on and take ownership of public land in
created by the federal government for Lovely County
settlers who were displaced by an 1828 treaty that gave
the settlers' land to the Cherokee nation . The term
gets its name from Lovely County in the Arkansas ter
ritory, which straddled what is now the Oklahoma
Arkansas border. The treaty divided the county,
granted the portion west of the Mississippi River to
the Cherokee nation, and required the settlers in that
territory to relocate. On May 24, 1828, Congress passed
an act granting relief to Lovely County settlers who
were forced to leave the Cherokee land and granted
them land on the eastern side ofthe river. Lovely claims
are found in chains oftitle in Arkansas. [Cases: Public
Lands (::::::>45.]
lowbote (loh-boht). Hist. Compensation paid for the
death ofone killed in a disturbance.
low diligence. See slight diligence under DILIGENCE.
lower chamber. See CHAMBER.
lower court. 1. See court below under COURT. 2. See
inferior court under COURT.
lower estate. See servient estate under ESTATE (4).
lower low tide. See TIDE.
lower-of-cost-or-market method. (1958) A means of
pricing or costing inventory by which inventory value is
set at either acquisition cost or market cost, whichever
is lower. [Cases: Internal Revenue
lower scale. See SCALE.
lowest responsible bidder. (1844) A bidder who has the
lowest price conforming to the contract specifications
and who is financially able and competent to complete
the work, as shown by the bidder's prior performance.
[Cases: Public Contracts

1033
low-grade security. See SECURITY.
low justice. See JUSTICE (3).
low-total voting. See VOTING.
low-water mark. See WATERMARK.
loyalty, n. (ISc) Faithfulness or allegiance to a person,
cause, duty, or government. -loyal, adj.
loyalty oath. See oath ofallegiance under OATH.
L.P. See limited partnership under PART~ERSHIP.
L.R. abbr. Law Reports. See REPORT (3).
LRIC. abbr. LONG-RUN INCREMENTAL COST.
L.S. abbr. LOCUS SIGILLI.
LSAT. abbr. LAW SCHOOL ADMISSIONS TEST.
Ltd. abbr. Limited -used in company names to indicate
limited liability.
LTV ratio. See LOAN-TO-VALUE RATIO.
luce darius (lao-see klair-ee-<'Is). [Latin] Scots law.
Clearer than light.  The phrase expresses the idea that
the evidence is very clear, usu. in circumstances neces
sary to support a conviction in a criminal case. -Also
termed luce meridiana clariores.
lucid, adj. (16c) 1. Understandable. 2. Rational. 3.
Sane.
lucid interval. (17c) 1. A brief period during which an
insane person regains sanity sufficient to have the legal
capacity to contract and act on his or her own behalf.
[Cases: Mental Health C=>3.l, 371; Wills 2.
A period during which a person has enough mental
capacity to understand the concept of marriage and
the duties and obligations it imposes. [Cases: Marriage
3. A period during which an otherwise incompe
tent person regains sufficient testamentary capacity to
execute a valid will. Also termed lucid moment.
lucid moment. See LUCID INTERVAL.
lucra nuptialia (loo-kra nap-shee-ay-l<'l). [Latin] Roman
law. The property that one spouse receives from another,
whether by gift, marriage-gift, dos, or testamentary dis
position. See POENAE SECU~DARUM NUPTIARUM.
lucrativa causa (loo-kr~-tI-v~ kaw-z~). [Latin] Roman
law. Enrichment for which the acquirer pays nothing
(e.g., a bequest). -Also termed causa lucrativa.
lucrativa usucapio pro herede (loo-kra-tI-v<'l yoo-z[y]oo
kay-pee-oh or -kap-ee-oh). [Latin] Roman law. A means
ofacquiring title to land that an heir has not possessed
and excluding the rightful heirs by holding it for one
year after the death ofthe landowner. There was no
requirement that the possessor act in good faith. '[his
practice survived from primitive law. Also termed
lucrativa uscapio pro herede. See USUCAPIO.
lucrative (loo-kr~-tiv adj. (lSc) 1. Profitable; remu
nerative <a lucrative business>. 2. Civil law. Acquired
or held without accepting burdensome conditions or
giving consideration <lucrative ownership>.
lucrative bailment. See bailment for hire under
BAILMENT. lump-sum agreement
lucrative office. See OFFICE.
lucrative succession. See PRAECEPTIO HAEREDITA1'IS.
lucrative title. See TITLE (2).
lucre (loo-kar), n. Monetary gain; profit.
lucri causa (loo-kn kaw-z~). [Latin] For the sake of
gain. Lucri causa was formerly an essential element
oflarceny, but today the thief's intent to deprive the
possessor of property is generally sufficient. See
LARCENY.
"'Lucri causa' literally means for the sake of gain. On rare
occasions the suggestion has been made that no taking is
with intent to steal unless the thief is motivated by some
purpose of gain or advantage. Even those advancing
this suggestion have not insisted upon an intent to gain
a pecuniary advantage. An intent to take away property
and destroy it for the purpose of destroying evidence has
been held to be sufficient even by those who have been
inclined to insist upon lucri causa as essential to an intent
to steal. The generally accepted view does not include this
element at all. It regards intent to deprive the owner of his
property permanently, or an intent to deal with another's
property unlawfully in such a manner as to create an obvi
ously unreasonable risk of permanent deprivation. as all
that is required to constitute the animus furandi -or intent
to steal." Rollin M. Perkins & Ronald N. Boyce, Criminal Law
332-33 (3d ed. 1982).
lucro captando. 1. See CERTANS DE LUCRO CAPTANDO.
2. IN LUCRO CAPTANDO.
lucrum (loo-kr~m), 11. [Latin] 1. Romal11aw. Gain; profit.
2. Hist. A small parcel ofland.
lucrum cessans (loo-kr;:Jm ses-anz). [Law Latin "ceasing
gain"] Hist. Damages awarded to include a loss of
anticipated profit in addition to an actual realizable
loss. Also termed lucrum interceptum. See DAMNUM
EMERGENS.
lucrum interceptum (loo-kram in-t;:Jr-sep-t;:Jm). See
LUCRUM CESSANS.
luctuosa hereditas (l;:Jk-choo-oh-sa h~-red-i-tas), n.
[Latin "mournful inheritance"] See hereditas luctuosa
under HEREDITAS.
luctus (13k-t~s 11. [Latin] Roman law. Mourning. -Also
termed tempus lugendi.
ludere in extremis (loo-dd-ree in ek-stree-mis). [Latin]
Hist. To make sport on deathbed. A person was
presumed never to trifle at the point ofdeath.
lukewarm ben