damages
In a lawsuit, money awarded to one party based on injury or loss caused by the other. There are many different types or categories of damages that occasionally overlap, including: compensatory damages Damages that cover actual injury or economic loss. Compensatory damages are intended to put the injured party in the position he was in prior to the injury. Compensatory damages typically include medical expenses, lost wages and the repair or replacement of property. Also called "actual damages."general damages Damages intended to cover injuries for which an exact dollar amount cannot be calculated. General damages are usually composed of pain and suffering, but can also include compensation for a shortened life expectancy, loss of the companionship of a loved one and, in defamation cases (libel and slander), loss of reputation. nominal damages A term used when a judge or jury finds in favor of one party to a lawsuit--often because a law requires them to do so--but concludes that no real harm was done and therefore awards a very small amount of money. For example, if one neighbor sues another for libel based on untrue things the second neighbor said about the first, a jury might conclude that although libel technically occurred, no serious damage was done to the first neighbor's reputation and consequentially award nominal damages of $1.00.punitive damages Sometimes called exemplary damages, awarded over and above special and general damages to punish a losing party's willful or malicious misconduct.special damages Damages that cover the winning party's out-of-pocket costs. For example, in a vehicle accident, special damages typically include medical expenses, car repair costs, rental car fees and lost wages. Often called "specials."statutory damages Damages required by statutory law. For example, in many states if a landlord doesn't return a tenant's security deposit in a timely fashion or give a reason why it is being withheld, the state statutes give the judge authority to order the landlord to pay damages of double or triple the amount of the deposit.treble damages Lawyerspeak for triple damages. To penalize lawbreakers, statutes occasionally give judges the power to award the winning party in a civil lawsuit the amount it lost as a result of the other party's illegal conduct, plus damages of three times that amount.

DBA
See doing business as.

death taxes
Taxes levied at death, based on the value of property left behind. Federal death taxes are called estate taxes. Some states levy inheritance taxes on people who inherit property.

debenture
A type of bond (an interest-bearing document that serves as evidence of a debt) that does not require security in the form of a mortgage or lien on a specific piece of property. Repayment of a debenture is guaranteed only by the general credit of the issuer. For example, a corporation may issue a secured bond that gives the bondholder a lien on the corporation’s factory. But if it issues a debenture, the loan is not secured by any property at all. When a corporation issues debentures, the holders are considered creditors of the corporation and are entitled to payment before shareholders if the business folds.

debit card
A card issued by a bank that combines the functions of an ATM card and checks. A debit card can be used to withdraw cash at a bank like an ATM card, and it can also be used at stores to pay for goods and services in place of a check. Unlike a credit card, a debit card automatically withdraws money from your checking account at the time of the transaction. Debit cards are regulated by the Electronic Funds Transfer Act.

debt collector
A person who works in the in-house collections department of an original creditor or a collection agency to track down debtors and get them to pay what they owe. Debt collectors can be relentless, often using scare tactics, humiliation and repeated phone calls to extract payments or promises to pay.

debtor
A person or entity (such as a corporation) who owes money.

decedent
A person who has died, also called "deceased."

decision
The outcome of a proceeding before a judge, arbitrator, government agency or other legal tribunal. "Decision" is a general term often used interchangeably with the terms judgment or "opinion." To be precise, however, a judgment is the written form of the court’s decision in the clerk’s minutes or notes, and an opinion is a written document setting out the reasons for reaching the decision.

declaration under penalty of perjury
A signed statement, sworn to be true by the signer, that will make the signer guilty of the crime of perjury if the statement is shown to be materially false -- that is, the lie is relevant and significant to the case.

declaratory judgment
A court decision in a civil case that tells the parties what their rights and responsibilities are, without awarding damages or ordering them to do anything. Unlike most court cases, where the plaintiff asks for damages or other court orders, the plaintiff in a declaratory judgment case simply wants the court to resolve an uncertainty so that it can avoid serious legal trouble in the future. Courts are usually reluctant to hear declaratory judgment cases, preferring to wait until there has been a measurable loss. But especially in cases involving important constitutional rights, courts will step in to clarify the legal landscape. For example, many cities regulate the right to assemble by requiring permits to hold a parade. A disappointed applicant who thinks the decision-making process is unconstitutional might hold his parade anyway and challenge the ordinance after he’s cited; or he might ask a court beforehand to rule on the constitutionality of the law. By going to court, the applicant may avoid a messy confrontation with the city -- and perhaps a citation, as well.

dedimus potestatum
An outdated legal procedure that permitted a party to take and record the testimony of a witness before trial, but only when that testimony might otherwise be lost. For example, a party to a lawsuit might use the procedure to obtain the testimony of a witness who was terminally ill and might not be able to testify at the trial. Nowadays, the Federal Rules of Civil Procedure routinely permit the taking of testimony before trial if that testimony might otherwise be lost.

deductible
Something that is taken away or subtracted. Under an insurance policy, for example, the deductible is the maximum amount that an insured person must pay toward his own losses before he can recover from the insurer. For example, Julie's car insurance policy has a $500 deductible. One day she forgets to set her parking brake and the car rolls backwards into a telephone pole, sustaining $2,500 in damage. Julie's insurance company deducts $500 from the total amount and issues a check to the auto body shop for $2,000.

deduction
In tax law, an amount that you can subtract from the total amount of income on which you owe tax. Examples of federal income tax deductions include mortgage interest, charitable contributions, and certain state taxes.

deed
A document that transfers ownership of real estate.

deed in lieu (of foreclosure)
A means of escaping an overly burdenome mortgage. If a homeowner can't make the mortgage payments and can't find a buyer for the house, many lenders will accept ownership of the property in place of the money owed on the mortgage. Even if the lender won't agree to accept the property, the homeowner can prepare a quitclaim deed that unilaterally transfers the homeowner's property rights to the lender.

deed of trust
See trust deed.

deep link
A link from one website to another that bypasses the second website's home page and takes the user directly to an internal page on the site. For example, a deep link from Yahoo might take the user directly to a news article on a news site instead of linking to the home page of the site.

defamation
A false statement that injures someone's reputation and exposes him to public contempt, hatred, ridicule, or condemnation. If the false statement is published in print or through broadcast media, such as radio or TV, it is called libel. If it is only spoken, it is called slander.

default
A failure to perform a legal duty. For example, a default on a mortgage or car loan happens when you fail to make the loan payments on time, fail to maintain adequate insurance or violate some other provision of the agreement. Default on a student loan occurs when you fail to repay a loan according to the terms you agreed to when you signed the promissory note, and the holder of your loan concludes that you do not intend to repay.

default divorce
See uncontested divorce.

default judgment
At trial, a decision awarded to the plaintiff when a defendant fails to contest the case. To appeal a default judgment, a defendant must first file a motion in the court that issued it to have the default vacated (set aside).

defeasance
A clause in a deed, lease, will or other legal document that completely or partially negates the document if a certain condition occurs or fails to occur. Defeasance also means the act of rendering something null and void. For example, a will may provide that a gift of property is defeasable -- that is, it will be void -- if the beneficiary fails to marry before the willmaker's death.

defendant
The person against whom a lawsuit is filed. In certain states, and in certain types of lawsuits, the defendant is called the respondent. Compare plaintiff, petitioner.

defined benefit plan
A type of pension plan that pays a definite, pre-determined amount of money when the worker retires or becomes disabled. The amount received is based on length of service with a particular employer. Most often, the monthly benefit is a fixed amount of money for each year of service. Payments under a defined benefit plan may also be calculated as a percentage of salary over the years.

defined contribution plan
A type of pension plan that does not guarantee any particular pension amount upon retirement. Instead, the employer pays into the pension fund a certain amount every month, or every year, for each employee. The employer usually pays a fixed percentage of an employee's wages or salary, although sometimes the amount is a fraction of the company's profits, with the size of each employee's pension share depending on the amount of wage or salary. Upon retirement, each employee's pension is determined by how much was contributed to the fund on behalf of that employee over the years, plus whatever earnings that money has accumulated as part of the investments of the entire pension fund.

demur
Presenting a demurrer to a court.

demurrer
A request made to a court, asking it to dismiss a lawsuit on the grounds that no legal claim is asserted. For example, you might file a demurrer if your neighbor sued you for parking on the street in front of her house. Your parking habits may annoy your neighbor, but the curb is public property and parking there doesn't cause any harm recognized by the law. After a demurrer is filed, the judge holds a hearing at which both sides can make their arguments about the matter. The judge may dismiss all or part of the lawsuit, or may allow the party who filed the lawsuit to amend its complaint. In some states and in federal court, the term demurrer has been replaced by "motion to dismiss for failure to state a claim" (called a "12(b)(6) motion" in federal court) or similar term.

dependents benefits
A type of Social Security benefit available to spouses and minor or disabled children of retired or disabled workers who qualify for either retirement or disability benefits under the program's rigorous qualification guidelines.

deponent
Someone whose deposition is being taken.

deportation
See removal.

deposition
An important tool used in pretrial discovery where one party questions the other party or a witness in the case. Often conducted in an attorney's office, a deposition requires that all questions be answered under oath and be recorded by a court reporter, who creates a deposition transcript. Increasingly, depositions are being videotaped. Any deponent may be represented by an attorney. At trial, deposition testimony can be used to cast doubt on (impeach) a witness's contradictory testimony or to refresh the memory of a suddenly forgetful witness. If a deposed witness is unavailable when the trial takes place -- for example, if he or she has died -- the deposition may be read to the jury in place of live testimony.

derivative work
For copyright purposes, a new work based upon an original work to which enough original creative work has been added so that the new work represents an original work of authorship. Examples of derivative works include a translation of a book into another language, a jazz version of a popular tune and a movie based on a play.

descriptive mark
A trademark or service mark that describes the characteristics of the product or service to which it's attached. For instance, "Jiffy Lube" describes its purportedly fast service. Marks judged to be descriptive are initially considered legally weak and don't get much protection from the courts. If federal registration is sought, they are usually placed on the Supplemental rather than Principal Trademark Register, which also doesn't provide much protection. After a descriptive mark has been in use for five years, however, it can be moved to the Principal Register on the theory that it has by that time become well known through public exposure.

desertion
The voluntary abandonment of one spouse by the other, without the abandoned spouse's consent. Commonly, desertion occurs when a spouse leaves the marital home for a specified length of time. Desertion is a grounds for divorce in states with fault divorce.

design patent
A patent issued on a new design, used for purely aesthetic reasons, that does not affect the functioning of the underlying device. Design patents last for 14 years from the date the patent is issued. For example, the unique flaring fender designs appearing on new model trucks to make them look more sporty are non-functional industrial designs that may qualify for design patents.

detain
See imprison.

devise
An old legal term that is generally used to refer to real estate left to someone under the terms of a will, or to the act of leaving such real estate. In some states, "devise" now applies to any kind of property left by will, making it identical to the term bequest. Compare legacy.

devisee
A person or entity who inherits real estate under the terms of a will.

dicta
Plural of dictum.

dictum
A remark, statement or observation of a judge that is not a necessary part of the legal reasoning needed to reach the decision in a case. Although dictum may be cited in a legal argument, it is not binding as legal precedent, meaning that other courts are not required to accept it. For example, if a defendant ran a stop sign and caused a collision, the judge's comments about the mechanical reliability of the particular make of the defendant's car would not be necessary to reach a decision in the case, and would be considered dictum. In future cases, lower court judges are free to ignore the comments when reaching their decisions. Dictum is an abbreviation of the Latin phrase "obiter dictum," which means a remark by the way, or an aside.

digital signature
See electronic signature.

dilution
A situation in which a famous trademark or service mark is used in a context in which the mark's reputation for quality is tarnished or its distinction is blurred. In this case, trademark infringement exists even though there is no likelihood of customer confusion, which is usually required in cases of trademark infringement. For example, the use of the word Candyland for a pornographic site on the Internet was ruled to dilute the reputation of the Candyland mark for the well-known children's game, even though the traditional basis for trademark infringement (probable customer confusion) wasn't an issue.

direct examination
At trial, the initial questioning of a party or witness by the side that called him or her to testify. The major purpose of direct examination is to explain your version of events to the judge or jury and to undercut your adversary's version. Good direct examination seeks to prove all facts necessary to satisfy the plaintiff's legal claims or causes of action -- for example, that the defendant breached a valid contract and, as a result, the plaintiff suffered a loss.

directed verdict
A ruling by a judge, typically made after the plaintiff has presented all of her evidence but before the defendant puts on his case, that awards judgment to the defendant. A directed verdict is usually made because the judge concludes the plaintiff has failed to offer the minimum amount of evidence to prove her case even if there were no opposition. In other words, the judge is saying that, as a matter of law, no reasonable jury could decide in the plaintiff's favor. In a criminal case, a directed verdict is a judgement of acquittal for the defendant.

director
A member of the governing board of a corporation, typically elected at an annual meeting of the shareholders. Directors are responsible for making important business decisions -- especially those that legally bind the corporation -- leaving day-to-day management to officers and employees of the corporation. For example, a decision to borrow money, lease an office or buy real property would normally be authorized by the board of directors. However, in the small business world, where it is common for owners to be directors, officers and employees simultaneously, distinctions dividing the roles and responsibilities of these groups are often blurred.

disability benefits
Money available from Social Security to benefit those under 65 who qualify because of their work and earning record and who meet the program's medical guidelines defining disability. The benefits are roughly equal to those available in Social Security retirement benefits.

discharge (of debts)
A bankruptcy court's erasure of the debts of a person or business that has filed for bankruptcy.

discharge (of probate administrator)
A court order releasing the administrator or executor from any further duties connected with the probate of an estate. This typically occurs when the duties have been completed but may happen sooner if the executor or administrator wishes to withdraw or is dismissed.

dischargeable debts
Debts that can be erased by going through bankruptcy. Most debts incurred prior to declaring bankruptcy are dischargeable, including back rent, credit card bills and medical bills. Compare nondischargeable debts.

disclaim
(1) To refuse or give away a claim or a right to something. For example, if your aunt leaves you a white elephant in her will and you don't want it, you can refuse the gift by disclaiming your ownership rights. (2) To deny responsibility for a claim or act. For example, a merchant that sells goods second-hand may disclaim responsibility for a product’s defects by selling it "as is."

disclaimer
(1) A refusal or renunciation of a claim or right. (2) A refusal or denial of responsibility for a claim or an act. (3) The written clause or document that sets out the disclaimer. See also disclaim.

disclosure
The making known of a fact that had previously been hidden; a revelation. For example, in many states you must disclose major physical defects in a house you are selling, such as a leaky roof or potential flooding problem.

discovery
A formal investigation -- governed by court rules -- that is conducted before trial. Discovery allows one party to question other parties, and sometimes witnesses. It also allows one party to force the others to produce requested documents or other physical evidence. The most common types of discovery are interrogatories, consisting of written questions the other party must answer under penalty of perjury, and depositions, which involve an in-person session at which one party to a lawsuit has the opportunity to ask oral questions of the other party or her witnesses under oath while a written transcript is made by a court reporter. Other types of pretrial discovery consist of written requests to produce documents and requests for admissions, by which one party asks the other to admit or deny key facts in the case. One major purpose of discovery is to assess the strength or weakness of an opponent's case, with the idea of opening settlement talks. Another is to gather information to use at trial. Discovery is also present in criminal cases, in which by law the prosecutor must turn over to the defense any witness statements and any evidence that might tend to exonerate the defendant. Depending on the rules of the court, the defendant may also be obliged to share evidence with the prosecutor.

disinherit
To deliberately prevent someone from inheriting something. This is usually done by a provision in a will stating that someone who would ordinarily inherit property -- a close family member, for example -- should not receive it. In most states, you cannot completely disinherit your spouse; a surviving spouse has the right to claim a portion (usually one-third to one-half) of the deceased spouse's estate. With a few exceptions, however, you can expressly disinherit children.

disposable income
The difference between a debtor's current monthly income and allowable expenses. This is the amount that the new bankruptcy law deems available to pay into a Chapter 13 plan.

dispute
The assertion of conflicting claims or rights between parties involved in a legal proceeding, such as a lawsuit, mediation or arbitration.

dissolution
A term used instead of divorce in some states.

distinctive mark
A trademark or service mark that is unusual in the context of its use, and therefore memorable. Distinctive marks typically consist of terms that are fanciful or arbitrary (Penguin books), suggestive (Accuride tires), or coined (Maalox antacid). Distinctive marks receive maximum judicial protection under state and federal laws.

distributee
(1) Anyone who receives something. Usually, the term refers to someone who inherits a deceased person’s property. If the deceased person dies without a will (called intestate), state law determines what each distributee will receive. Also called a beneficiary.

District Attorney (D.A.)
A lawyer who is elected to represent a state government in criminal cases in a designated county or judicial district. A D.A.'s duties typically include reviewing police arrest reports, deciding whether to bring criminal charges against arrested people and prosecuting criminal cases in court. The D.A. may also supervise other attorneys, called Deputy District Attorneys or Assistant District Attorneys. In some states a District Attorney may be called a Prosecuting Attorney, County Attorney or State's Attorney. In the federal system, the equivalent to the D.A. is a United States Attorney. The country has many U.S. Attorneys, each appointed by the President, who supervise regional offices staffed with prosecutors called Assistant United States Attorneys.

district court
In federal court and, in some states, the name of the main trial court. Thus, if you file suit in federal court, your case will normally be heard in federal district court. States may also group their appellate courts into districts -- for example, The First District Court of Appeal.

diversity jurisdiction
The power of the federal courts to decide cases between two citizens of different states, provided the amount the plaintiff seeks in damages exceeds $75000.

dividend
A portion of profits distributed by a corporation to its shareholders based on the type of stock and number of shares owned. Dividends are usually paid in cash, though they may also be paid in the form of additional shares of stock or other property. The amount of a dividend is established by the corporation's board of directors; however, state laws often restrict a corporation's ability to declare dividends by requiring a minimum level of profits or assets before the dividend can be approved.

divorce
The legal termination of marriage. All states require a spouse to identify a legal reason for requesting a divorce when that spouse files the divorce papers with the court. These reasons are referred to as grounds for a divorce.

divorce agreement
An agreement made by a divorcing couple regarding the division of property, custody and visitation of the children, alimony or child support. The agreement must be put in writing, signed by the parties and accepted by the court. It becomes part of the divorce decree and does away with the necessity of having a trial on the issues covered by the agreement. A divorce agreement may also be called a marital settlement agreement, marital termination agreement or settlement agreement.

docket
See court calendar.

doctrine of equivalents
A patent rule under which a new device or process violates an existing patent if the new invention does the same work in a substantially similar way to achieve the same results.

doing business as (DBA)
A situation in which a business owner operates a company under a name different from his or her real name. The owner must file a "fictitious name statement" or similar document with the appropriate agency -- for example, the county clerk. This enables consumers to discover the names of the business owners, which is important if a consumer needs to sue the business.

domain name
A combination of letters and numbers that identifies a specific computer or website on the Internet. A domain name usually consists of three parts: a generic "top-level" domain such as ".com" or ".gov" that identifies the type of organization; a second level domain such as nolo or yahoo, which identifies the organization, site or individual; and a third level domain such as "www," which is used to identify a particular host server. Domain names have various functions. They can serve as an address (whitehouse.com), as a trademark (amazon.com) or as an expression of free speech (presidentbushsucks.com). A domain name owner can stop another business from using the same name for its business or product only if the domain name is being used as a trademark. In other words, if you use your domain name in connection with the sale of goods or services and consumers associate the domain name with your business, you can stop another business from using it. On the flip side, trademark owners can stop others from using a domain name if it conflicts with their existing trademark.

dominant tenement
Property that carries a right to use a portion of a neighboring property. For example, property that benefits from a beach access trail across another property is the dominant tenement.

donation
A gift of property. The IRS allows you to take an income tax deduction for the value of donations made to charitable organizations who are recognized as such by the IRS.

donee
Someone who receives a gift.

donor
Someone who gives a gift.

dower and curtesy
A surviving spouse's right to receive a set portion of the deceased spouse's estate -- usually one-third to one-half. Dower (not to be confused with a “dowry”) refers to the portion to which a surviving wife is entitled, while curtesy refers to what a man may claim. Until recently, these amounts differed in a number of states. However, because discrimination on the basis of sex is now illegal in most cases, most states have abolished dower and curtesy and generally provide the same benefits regardless of sex -- and this amount is often known simply as the statutory share. Under certain circumstances, a living spouse may not be able to sell or convey property that is subject to the other spouse’s dower and curtesy or statutory share rights.

down payment
A lump sum cash payment paid by a buyer when he or she purchases a major piece of property, such as a car or house. The buyer typically takes out a loan for the balance remaining, and pays it off in monthly installments over time.

draft
(1) A written order for the payment of money, such as a check. The person who writes the draft is called the drawer, the person who holds the money -- for example, the bank -- is called the drawee, and the person who ultimately receives the money is called the payee. After receiving the draft, the payee can demand payment at any time unless the draft specifies a particular time for payment. Also called a bill of exchange. (2) A preliminary version of a written document, such as a law or a legal brief, that is ready for revision or correction. (3) To select for some purpose, such as military service.

driving under the influence (DUI)
The crime of operating a motor vehicle while under the influence of alcohol or drugs, including prescription drugs. Complete intoxication is not required; the level of alcohol or drugs in the driver's body must simply be enough to prevent him from thinking clearly or driving safely. State laws specify the levels of blood alcohol content at which a person is presumed to be under the influence. Also called driving while intoxicated (DWI and drunk driving).

driving while intoxicated (DWI)
See driving under the influence.

drunk driving
See driving under the influence.

DUI
See driving under the influence.

durable power of attorney
A power of attorney that remains in effect if the principal becomes incapacitated. If a power of attorney is not specifically made durable, it automatically expires if the principal becomes incapacitated. See durable power of attorney for finances; durable power of attorney for healthcare.

durable power of attorney for finances
A legal document that gives someone authority to manage your financial affairs if you become incapacitated. The person you name to represent you is usually called your agent or attorney-in-fact.

durable power of attorney for health care
A legal document that you can use to give someone permission to make medical decisions for you if you are unable to make those decisions yourself. The person you name to represent you may be called an agent, attorney-in-fact, health care proxy, patient advocate, or something similar, depending on where you live.

DWI
Abbreviation for driving while intoxicated. See driving under the influence.

dynamite charge
An judge’s admonition to a deadlocked jury to go back to the jury room and try harder to reach a verdict. The judge might remind the jurors to respectfully consider the opinions of others and will often assure them that if the case has to be tried again, another jury won’t necessarily do a better job than they’re doing. Because of its coercive nature, some states prohibit the use of a dynamite charge as a violation of their state constitution, but the practice passed Federal constitutional muster in the case of Allen v. Gainer. The instruction is also known as a dynamite instruction, shotgun instruction, Allen charge or third degree instruction.