Legal Definitions - stoppage

Stoppage generally refers to an obstruction or hindrance that prevents an act from being performed or completed. In civil law, it also specifically denotes a setoff, which is a deduction made from a payment due to an outstanding debt or obligation.

Stoppage refers to two distinct concepts:

• 1. An Interruption or Obstruction: This meaning refers to a temporary halt, blockage, or hindrance that prevents an action, process, or movement from continuing as intended.

  • Example A: A government agency issues an emergency order to temporarily halt (a stoppage) all commercial fishing in a specific ocean area after a significant oil spill, to prevent contamination of seafood.

    Explanation: This illustrates a stoppage because the ongoing activity of commercial fishing is obstructed and prevented from continuing by the government's regulatory order.

  • Example B: During a major sporting event, play is brought to a stoppage when a severe thunderstorm forces all participants and spectators to seek shelter, pausing the competition until conditions improve.

    Explanation: Here, the thunderstorm acts as a hindrance, causing a temporary interruption or stoppage in the progress of the sporting event.

• 2. A Deduction or Setoff (in a financial context): This refers to a reduction or withholding from a payment or amount due to one party, made to account for a debt or obligation owed by that party to the payer.

  • Example A: An employee resigns, and the company makes a stoppage from their final paycheck to recover the outstanding balance of a company loan previously advanced to the employee.

    Explanation: This is a stoppage because the company is deducting (setting off) a prior debt owed by the employee from the money it owes the employee (the final paycheck).

  • Example B: A client hires a consultant for a project. After the project is completed, the client discovers that the consultant caused minor damage to office equipment. The client then applies a stoppage to the final payment, deducting the cost of repairs from the consultant's invoice.

    Explanation: In this scenario, the client is performing a stoppage by reducing the amount owed to the consultant to cover the cost of the damage, which represents an obligation owed by the consultant to the client.