The Wagoner Doctrine is an American 2nd Circuit legal principle applying the longstanding common law in pari delicto

In pari delicto

In pari delicto , Latin for "in equal fault " is a legal term used to indicate that two persons or entities are equally at fault, whether the malfeasance in question is a crime or tort.The phrase is most commonly used by courts when relief is being denied to both parties in a civil action because of...

(roughly translated "in equal fault") rule in the bankruptcy setting.

Though controversial due to its willingness to bar recovery in what is typically considered an equitable poroceeding (i.e. bankruptcy

Bankruptcy

Bankruptcy is a legal status of an insolvent person or an organisation, that is, one that cannot repay the debts owed to creditors. In most jurisdictions bankruptcy is imposed by a court order, often initiated by the debtor....

) and thus not well accepted in other circuits, Wagoner holds that "a claim against a third party for defrauding a corporation with the cooperation of corporate management accrues to the creditors, and not to the guilty corporation."

See in pari delicto

In pari delicto

In pari delicto , Latin for "in equal fault " is a legal term used to indicate that two persons or entities are equally at fault, whether the malfeasance in question is a crime or tort.The phrase is most commonly used by courts when relief is being denied to both parties in a civil action because of...

for more information.