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 ?
131, 141-42 (2013) ("Although the Supreme Court has generally interpreted savings clauses to preclude any finding of express preemption, it has 'decline[d] to give broad effect to saving clauses where doing so would upset the careful regulatory scheme established by federal law.
10) However, the Fourth Circuit took a weaker position on the issue, calling the two savings clauses "similar.
The Tax Court noted a difference between invalid savings clauses and valid formula clauses as used in Wandry.
This is especially true because, as will be discussed below, such laws may strongly resemble straightforward insurance regulation but may fail to meet the two--pronged test for the savings clause.
24) Thus, the court held that the provision was valid under IRCA's savings clause and was not preempted under implied field or conflict preemption.
While that clause should be read to preserve antitrust enforcement where at all possible, it would be contrary to the general treatment of savings clauses to read it as preserving general antitrust law where so doing would impede the specific statutory mandates and objectives.
Of particular importance to fostering innovation and creating incentives for reduced pollution is the preservation of common law regimes through savings clauses and linked floor preemption.
The IRS generally views tax savings clauses with disfavor, placing reliance on Comm'r v.
Savings clauses that remove the taint of usury are favored by the law and will be given effect if reasonably possible.
Many states have adopted savings clauses to provide limited liability for LLC members even if the strict formalities of the state statute are not met.
Savings clauses are used in several different contexts to create certainty with regard to transfers of property between related parties.