Indemnification Clause in Prime Contract is not Incorporated by Reference into Subcontract Under New York Law in Absence of Express Agreement to Do So

Where an employee of an electrical sub-subcontractor was injured on the jobsite, he sued the project developer, the prime contractor, and others.  Those firms in turn filed a third-party claim against the sub-sub claiming the right to common law indemnity as well as...

Attorneys Fees Recovered to Enforce Indemnity Agreement

A “choice of law” provision in a contract provides for the law of a specified state to govern the contract and disputes between the parties that arise out of the contract.  Often the law of the state where the project is performed is selected as the governing law.  It...

Agreement to Indemnify Project Owner for Penalties due to Violations of Americans with Disabilities Act Is Void and Unenforceable

Where design professionals agree by contract to indemnify a project owner for “any damages arising from any act, omission, or willful misconduct”, that provision cannot be enforced when the damages at issue arise out of violations of the Americans with Disabilities...

Indemnification Clauses: Uninsurable Contractual Liability

Professional consultants are judged by whether or not they satisfied the professional standard of care (i.e., were not negligent in the performance of their services). That is what is covered under a professional liability policy; therefore, it is critical that the...

Indemnity Obligation Not Owed to Client for Claims Partially Caused by Client’s Negligence. Duty to Defend Only Applies to Claims Directly Attributable to Indemnitor’s Actions within Scope of Work

Where an indemnity clause did not expressly state that the subcontractor was required to indemnify its client, the prime contractor, for all damages including those caused partially by the client’s own negligence, the subcontractor’s indemnification obligations were...

No Common law Indemnification Duty Owed by General Contractor to Project Owner for Subcontractor Employee Injuries Where GC Did Not Control and Supervise the Subcontractor’s Work

Where a general contractor performing a build-out for a store tenant (not the project owner) retained the services of a subcontractor for certain work and an employee of the subcontractor was injured by falling from a ladder, the project owner sued the contractor for...

The Expanding Reach of the Crawford Decision and the Impact On Construction Indemnity Agreements

By:  Michael D. Wilson, Jr. Gordon Rees, LLP 275 Battery Street Suite 2000 San Francisco, CA 94111 (415) 986-5900 In the period since the California Supreme Court published the seminal decision in Crawford v. Weathershield  (“Crawford”) and refused to consider or...

Indemnification Clause Requires Subcontractor to Indemnify Prime Contractor Regardless of Finding that Sub was not Negligent, and the Additional Insured Endorsement Requires Insurer to Cover the Prime for Damages not Caused by Sub’s Negligence

Where a pipeline was damaged when it was struck by sheeting being installed by a sub-subcontractor while installing lift stations along a pipeline previously installed by the prime contractor, the sub-subcontractor was found to be liable to its client (ECI...

Engineer Required to Indemnify Client for Costs of First Party Claim, Including Attorneys Fees to Extent Attributable to Engineer

Pursuant to a contractual indemnification clause, a trial court awarded damages of $810,000 in attorneys fees against an engineer in favor of a project owner, Wal-Mart Stores, Inc., on a jury verdict of $48,600 in actual property damages.  Wal-Mart’s first party claim...

Assignee of Contract Indemnification Rights under a Design-Build Contract Stands in Shoes of Indemnitee and is Entitled to Recover Defense Costs

Where  a firm (Parsons Infrastructure) entered into a contract to design and construct a soda ash processing plant for Kerr-McGee Chemical Corp (KM) and agreed to provide KM with a defense and indemnity against losses arising out of negligent performance of its work, ...