severability

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severability

the rule of construction of contracts that allows a court to ignore a part of a contract that would render it in some way defective and to read instead what is left. It has been applied to restrictive covenants where, if the words are capable of being so read, the court will ignore a severe restriction and allow a lesser restriction. It also applies in cases involving ROMALPA CLAUSES where certain words might render the clause wholly inoperative, the court can, again only if the words are capable of sustaining such a reading, allow the plaintiff some lesser power to trace the goods or their proceeds.
References in periodicals archive ?
a severability clause, courts will generally follow the clause's
35) On the other, the presence of the severability clause evidenced that Congress intended the provisions to be severable.
The arbitration agreement in Gessa did not contain a severability clause.
The inclusion of a severability clause reinforces the presumption that
That's because the healthcare law lacks a severability clause that would maintain the law's overall validity if the individual mandate requirement gets overturned.
See, if the mandate--even by itself- is ruled unconstitutional, the law's lack of a severability clause would invalidate the entire piece of legislation.
District Judge Roger Vinson, who had found the entire law unconstitutional because the individual mandate was "inextricably bound together" with the rest of the law and because Congress had failed to include a severability clause in the law.
To illustrate this vagueness problem of the severability clause,
Vinson says he did not try to separate the individual insurance ownership mandate from the rest of PPACA because it appeared that Congress had made an active decision to delete a severability clause from the act.
Florida ruling: Lack of severability clause important
But because there is a severability clause, some aspects of the Arizona law are likely to survive, including the provision that creates a new crime for stopping a motor vehicle to pick up a day laborer and the portion that allows citizens to sue the state government if it interferes with enforcement of immigration laws.
Paul Ferrillo, New York City-based attorney with Weft, Gotshal & Manges, said potential directors and officers looking at the risk of their new posts could make sure the company's D&O policies contain a full severability clause so that in the cause of fraud on the part of some directors and officers, the innocent would still enjoy full coverage.