Demand for an Indemnitor to Defend and Indemnify is not Premature Where Underlying Dispute Has not been decided
Source: https://www.constructionrisk.com/, July 25, 2024
By: Kent Holland
A car driver drove over a downed telecommunications line owned by Cox Company, resulting in claimed damages to the individual and his car. The driver filed suit against Cox and Cable Man, Inc., a company under contract to Cox to provide maintenance and repair of lines. Cox sent a demand to Cable Company to provide indemnification and defense as required by a contractual indemnity clause in their contract. Cable Man refused to indemnify. Cox then filed a cross claim against Cable Man asserting that it was required to indemnify and defend. In response, Cable Man filed what is known as “Exception of Prematurity”, arguing that the indemnity claim was premature until a finding of liability in the underlying claim was rendered. Read more.