Indemnity
Indemnities Demystified
October 18th, 2016
Indemnity. In the panoply of contract terms, no other word strikes as much terror into the hearts of contract administrators, project managers and other business types. This fear is often born of the failure to understand the essential elements and p…
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Surety’s Indemnity Rights Eliminated by Subsequent Arbitration Agreement
August 5th, 2016
Most readers are familiar with the concept that performance bond sureties expect to recoup, from their principals, every dollar of cost incurred in responding to demands on the bond. And most readers are aware that the typical general indemnity agree…
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Contract Indemnity and Duty to Defend vs. Insurance Duty to Defend
June 10th, 2016
A New Hampshire court has issued a thoughtful decision on the duty to defend arising from an indemnity obligation in a design contract. The court distinguished between the duty to defend often invoked for insurance coverage, from a duty to defend exp…
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Indemnity, Duty to Defend, and Timing
January 20th, 2016
The concept of indemnity gets a lot of press. With good reason, since an indemnity is one tool in the risk management shed. As a recent court decision shows, however, a duty to defend is different than an indemnity. And a party who seeks to establish…
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Contractor's Court Judgment against Sub Did Not Resolve or Eliminate Sub-Sub’s Payment Bond Rights
December 8th, 2015
When third-party creditors sought to garnish an electrical sub’s contract balance, the general contractor, McMillan-Pitts, commenced an interpleader action against the electrical sub and its known creditors, and deposited the remaining subcontract…
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Apply Common Sense To Indemnity Claim
July 28th, 2015
A mechanical sub’s employee is severely injured during a coffee break when an improperly-fastened section of limestone façade comes loose near where he is sitting. Should the mechanical sub owe a duty of indemnity to the prime contractor? The Mass…
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Overbroad Indemnity Is Still Enforceable Within Statutory Limits
June 23rd, 2015
Oregon has a law, similar to many other states, prohibiting overbroad indemnities in construction contracts. The Oregon Supreme Court has ruled that the law allows an arguably overbroad indemnity to be enforced within the statutory constraints, rathe…
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Mind The (Procedural) Gap – Third-Party Claims Lost
June 3rd, 2015
Owner sued contractor, who filed third-party claims against subs seeking only indemnity from them if the contractor was found liable to the owner. Contractor then moved to dismiss the owner’s claim as barred by the statute of limitations. The court…
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Subcontractor Charged For Having Its Own Lien Bonded Off
March 24th, 2015
Based on subcontract language, a Minnesota appeals court has held that the prime contractor could charge its lien bond premium against the sub who filed the lien. Arising from a power generation station project, the prime and a sub pursued breach of…
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About Stan Martin
Stan Martin holds a law degree and an undergraduate degree in architecture. He has been involved with the construction industry for more than 45 years, working in construction prior to law school and beginning his construction law practice. During his career, he has been actively involved with the Associated General Contractors of Massachusetts, the Boston Society of Architects, the American Arbitration Association, and the Massachusetts Building Congress.