Law.com Subscribers SAVE 30%
Call 855-808-4530 or email [email protected] to receive your discount on a new subscription.
The Leasing Hotline
Indemnification Permitted
Where parties freely enter into an indemnification agreement whereby they use insurance to allocate the risk of liability, indemnification is not prohibited. Great Northern Insurance Co. v. Interior Construction Corp., et al., No. 117, New York Court of Appeals, Oct. 19, 2006.
New Water leased a portion of its building to Depository Trust. The lease required Depository to indemnify New Water from any and all claims arising from or in connection with, inter alia, any accident occurring in Depository's premises unless solely caused by New Water's negligence. After entering into the lease, Depository commenced construction on the premises and caused a flood that damaged property of another tenant, Neuberger. Thereafter, Great Northern Insurance Company (Neuberger's insurer) commenced a subrogation action against New Water and Depository to recover monies it had paid to Neuberger.
New Water interposed a cross-claim against Depository for contractual indemnification. New Water moved for summary judgment against Depository. The trial court denied the motion, and the appellate court reversed. The highest court affirmed the appellate division. It held that the indemnification clause was properly triggered because the parties stipulated that Depository was 90% responsible for the flood. It held that where parties freely enter into an indemnification agreement whereby they use insurance to allocate the risk of liability, indemnification is not prohibited.
Indemnification Permitted
Where parties freely enter into an indemnification agreement whereby they use insurance to allocate the risk of liability, indemnification is not prohibited. Great Northern Insurance Co. v. Interior Construction Corp., et al., No. 117,
New Water leased a portion of its building to Depository Trust. The lease required Depository to indemnify New Water from any and all claims arising from or in connection with, inter alia, any accident occurring in Depository's premises unless solely caused by New Water's negligence. After entering into the lease, Depository commenced construction on the premises and caused a flood that damaged property of another tenant, Neuberger. Thereafter, Great Northern Insurance Company (Neuberger's insurer) commenced a subrogation action against New Water and Depository to recover monies it had paid to Neuberger.
New Water interposed a cross-claim against Depository for contractual indemnification. New Water moved for summary judgment against Depository. The trial court denied the motion, and the appellate court reversed. The highest court affirmed the appellate division. It held that the indemnification clause was properly triggered because the parties stipulated that Depository was 90% responsible for the flood. It held that where parties freely enter into an indemnification agreement whereby they use insurance to allocate the risk of liability, indemnification is not prohibited.
This premium content is locked for Entertainment Law & Finance subscribers only
ENJOY UNLIMITED ACCESS TO THE SINGLE SOURCE OF OBJECTIVE LEGAL ANALYSIS, PRACTICAL INSIGHTS, AND NEWS IN ENTERTAINMENT LAW.
- Stay current on the latest information, rulings, regulations, and trends
- Includes practical, must-have information on copyrights, royalties, AI, and more
- Tap into expert guidance from top entertainment lawyers and experts
Already a have an account? Sign In Now Log In Now
For enterprise-wide or corporate acess, please contact Customer Service at [email protected] or 877-256-2473
How Secure Is the AI System Your Law Firm Is Using?
What Law Firms Need to Know Before Trusting AI Systems with Confidential Information In a profession where confidentiality is paramount, failing to address AI security concerns could have disastrous consequences. It is vital that law firms and those in related industries ask the right questions about AI security to protect their clients and their reputation.
COVID-19 and Lease Negotiations: Early Termination Provisions
During the COVID-19 pandemic, some tenants were able to negotiate termination agreements with their landlords. But even though a landlord may agree to terminate a lease to regain control of a defaulting tenant's space without costly and lengthy litigation, typically a defaulting tenant that otherwise has no contractual right to terminate its lease will be in a much weaker bargaining position with respect to the conditions for termination.
Pleading Importation: ITC Decisions Highlight Need for Adequate Evidentiary Support
The International Trade Commission is empowered to block the importation into the United States of products that infringe U.S. intellectual property rights, In the past, the ITC generally instituted investigations without questioning the importation allegations in the complaint, however in several recent cases, the ITC declined to institute an investigation as to certain proposed respondents due to inadequate pleading of importation.
Authentic Communications Today Increase Success for Value-Driven Clients
As the relationship between in-house and outside counsel continues to evolve, lawyers must continue to foster a client-first mindset, offer business-focused solutions, and embrace technology that helps deliver work faster and more efficiently.
The Power of Your Inner Circle: Turning Friends and Social Contacts Into Business Allies
Practical strategies to explore doing business with friends and social contacts in a way that respects relationships and maximizes opportunities.