{"id":896277,"date":"2019-08-07T12:55:18","date_gmt":"2019-08-07T18:55:18","guid":{"rendered":"https:\/\/www.myconstructionexpert.com\/blog\/?p=896277"},"modified":"2019-08-07T12:55:21","modified_gmt":"2019-08-07T18:55:21","slug":"second-level-of-protection-to-indemnities","status":"publish","type":"post","link":"https:\/\/www.myconstructionexpert.com\/blog\/second-level-of-protection-to-indemnities\/","title":{"rendered":"A Second Level of Protection to Indemnitees"},"content":{"rendered":"\n

Thomas L. Oliver III | Bradley Arant Boulg Cummings<\/a> | July 31, 2019<\/p>\n\n\n\n

Construction and Procurement Law News, Q2 2019<\/strong><\/p>\n\n\n\n

It is not uncommon for indemnitees to attempt to add language to indemnification provisions providing additional liability protections from the indemnitor. And courts and legislators are wary of language in indemnity agreements that create obligations on the indemnitor to indemnify the indemnitee for its own acts or omissions and create restrictions on the indemnitee\u2019s rights to do so. A recent Florida court attempted to strike a balance between an indemnitee\u2019s right to indemnification generally and protecting an indemnitor from indemnifying the indemnitee for its own fault.<\/p>\n\n\n\n

In CB Contractors, LLC v. Allens Steel Products, Inc.<\/em>, a general contractor of a condominium project brought a contractual and common law indemnification action against its subcontractors arising out of a construction defect action brought against the contractor by the condominium association.<\/p>\n\n\n\n

The subcontract\u2019s indemnity clause stated: \u201cSubcontractor\u2019s indemnity obligations hereunder shall apply regardless of whether or not the claims, damages, losses, and expenses or causes of actions are caused in part by a party indemnified hereunder [\u2026].\u201d In essence, the subcontract, on its face, allowed the general contractor to seek indemnity for claims, damages, and losses as a result of its own fault.<\/p>\n\n\n\n

Florida Statute \u00a7 725.06 (2004), which applies to construction of buildings, states that \u201c[a]ny portion of any agreement [\u2026] promis[ing] to indemnify or hold harmless the other party to the agreement [\u2026] for damages to persons or property caused in whole or in part by an act, omission, or default of the indemnitee [\u2026] shall be void and unenforceable unless the contract contains a monetary limitation on the extent of the indemnification that bears a reasonable commercial relationship to the contract [\u2026].\u201d<\/p>\n\n\n\n

Applying this statute, the lower court found that the entire indemnity clause was void and unenforceable. The general contractor appealed the trial court\u2019s decision.<\/p>\n\n\n\n

On appeal, the appellate court disagreed and found that the entire indemnity clause was not void and unenforceable, but instead concluded that only the specific portion of the indemnity clause purporting to impose indemnity obligations for the contractor\u2019s own acts or omissions was unenforceable.<\/p>\n\n\n\n

This ruling, which reflects the same middle-of-the-road approach followed by many jurisdictions, provides protection to the indemnitor without completely voiding the parties\u2019 indemnification agreement. This decision could have been different under a different state\u2019s stricter law regarding indemnity. Contracting parties should carefully consider the extent of indemnity included in their contracts, especially in light of the relevant jurisdiction\u2019s law regarding those protections.<\/p>\n","protected":false},"excerpt":{"rendered":"

Thomas L. Oliver III | Bradley Arant Boulg Cummings | July 31, 2019 Construction and Procurement Law News, Q2 2019 It is not uncommon for indemnitees to attempt to add language to indemnification provisions providing additional liability protections from the indemnitor. And courts and legislators are wary of language in indemnity agreements that create obligations… Continue reading A Second Level of Protection to Indemnitees<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false},"version":2}},"categories":[9914],"tags":[382,9895,8881,9026,23],"class_list":["post-896277","post","type-post","status-publish","format-standard","hentry","category-insurance-coverage","tag-additional-insured","tag-advise-consult","tag-indemnity","tag-indemnity-provision","tag-insurance-coverage","entry"],"jetpack_publicize_connections":[],"yoast_head":"\nA Second Level of Protection to Indemnitees - 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