Indemnification Obligation is Premature if Negligence is not Demonstrated
Source: https://www.constructionrisk.com/, December 30, 2024
By: Kent Holland
Town was sued by its construction contractor for breach of contract based on failure to pay amounts owed. Town then impleaded its engineering firm, asserting that under the indemnification clause of the engineer’s contract the engineer owed the Town a duty to “assume the defense, indemnify and hold harmless the Town…” against claims brought against the town “to the extent of [ ] negligent acts, errors or omissions….” The town’s complaint against the engineer didn’t expressly allege negligence but asserts “that certain elements of the … design … were deficient….” Read more.