Deep pocket
Encyclopedia
Deep pocket is an American
slang
term; it usually means "extensive financial wealth or resources". It is usually used in reference to big companies or organizations (ex: the American tobacco
companies have "deep pockets"), although it can be used in reference to individuals (e.g., Bill Gates
, Donald Trump
).
In the context of a lawsuit, the deep pocket is often the target defendant
, even when the true (moral) culpability is with another party because the deep pocket has money to pay a verdict. For example, a lawyer may comment that he or she sued the manufacturer of a product rather than the seller because it is the deep pocket, meaning it has more money than the seller with which to compensate the victim.
A person with “short arms” and “deep pockets” is a person (sometimes derided as “miserly” or “cheap") who saves money and doesn’t often spend it. The term “short arms and deep/long pockets” is cited in print from at least 1952.
In Ireland, this phrase was attached to a wealthy business man from Tipparary who, upon his round of drinks, would break his glass on the floor, knowing the owner of the pub would ask him to leave. This was also called the “O’Shea Fiddle”.
of tort law. It refers to the idea that the risk
of an activity should be borne by a person that is in a relatively good position to handle it. This can be achieved by either spreading the risk over a large number of risk-bearers (usually by means of insurance
), or by imposing it on a person that is relatively risk-neutral. The latter is often assumed to be the case for wealthy individuals or large corporations, who are referred to as having "deep pockets", since their wealth will not be affected very strongly if the risk materializes. For example, a deep pocket argument might, among other arguments, be used to justify product liability
, as producers with "deep pockets" will normally be better able to accommodate the risk of damages than individual consumers not endowed with "deep pockets".
American English
American English is a set of dialects of the English language used mostly in the United States. Approximately two-thirds of the world's native speakers of English live in the United States....
slang
Slang
Slang is the use of informal words and expressions that are not considered standard in the speaker's language or dialect but are considered more acceptable when used socially. Slang is often to be found in areas of the lexicon that refer to things considered taboo...
term; it usually means "extensive financial wealth or resources". It is usually used in reference to big companies or organizations (ex: the American tobacco
Tobacco
Tobacco is an agricultural product processed from the leaves of plants in the genus Nicotiana. It can be consumed, used as a pesticide and, in the form of nicotine tartrate, used in some medicines...
companies have "deep pockets"), although it can be used in reference to individuals (e.g., Bill Gates
Bill Gates
William Henry "Bill" Gates III is an American business magnate, investor, philanthropist, and author. Gates is the former CEO and current chairman of Microsoft, the software company he founded with Paul Allen...
, Donald Trump
Donald Trump
Donald John Trump, Sr. is an American business magnate, television personality and author. He is the chairman and president of The Trump Organization and the founder of Trump Entertainment Resorts. Trump's extravagant lifestyle, outspoken manner and role on the NBC reality show The Apprentice have...
).
In the context of a lawsuit, the deep pocket is often the target defendant
Defendant
A defendant or defender is any party who is required to answer the complaint of a plaintiff or pursuer in a civil lawsuit before a court, or any party who has been formally charged or accused of violating a criminal statute...
, even when the true (moral) culpability is with another party because the deep pocket has money to pay a verdict. For example, a lawyer may comment that he or she sued the manufacturer of a product rather than the seller because it is the deep pocket, meaning it has more money than the seller with which to compensate the victim.
Deep pocket as a slang term
The term “deep pockets” (also given as “deep pocket” and “deep pocketed") is attested sparsely in the 1940s through the 1960s, but became popular with the litigation explosion of the 1970s.A person with “short arms” and “deep pockets” is a person (sometimes derided as “miserly” or “cheap") who saves money and doesn’t often spend it. The term “short arms and deep/long pockets” is cited in print from at least 1952.
In Ireland, this phrase was attached to a wealthy business man from Tipparary who, upon his round of drinks, would break his glass on the floor, knowing the owner of the pub would ask him to leave. This was also called the “O’Shea Fiddle”.
Deep pocket in law and economics
Deep pocket is a concept often used in the law and economicsLaw and economics
The economic analysis of law is an analysis of law applying methods of economics. Economic concepts are used to explain the effects of laws, to assess which legal rules are economically efficient, and to predict which legal rules will be promulgated.-Relationship to other disciplines and...
of tort law. It refers to the idea that the risk
Risk
Risk is the potential that a chosen action or activity will lead to a loss . The notion implies that a choice having an influence on the outcome exists . Potential losses themselves may also be called "risks"...
of an activity should be borne by a person that is in a relatively good position to handle it. This can be achieved by either spreading the risk over a large number of risk-bearers (usually by means of insurance
Insurance
In law and economics, insurance is a form of risk management primarily used to hedge against the risk of a contingent, uncertain loss. Insurance is defined as the equitable transfer of the risk of a loss, from one entity to another, in exchange for payment. An insurer is a company selling the...
), or by imposing it on a person that is relatively risk-neutral. The latter is often assumed to be the case for wealthy individuals or large corporations, who are referred to as having "deep pockets", since their wealth will not be affected very strongly if the risk materializes. For example, a deep pocket argument might, among other arguments, be used to justify product liability
Product liability
Product liability is the area of law in which manufacturers, distributors, suppliers, retailers, and others who make products available to the public are held responsible for the injuries those products cause...
, as producers with "deep pockets" will normally be better able to accommodate the risk of damages than individual consumers not endowed with "deep pockets".