{"id":904343,"date":"2025-05-13T16:28:39","date_gmt":"2025-05-13T22:28:39","guid":{"rendered":"https:\/\/www.myconstructionexpert.com\/blog\/?p=904343"},"modified":"2025-05-13T16:28:45","modified_gmt":"2025-05-13T22:28:45","slug":"indemnification-provision-held-enforceable-in-alabama","status":"publish","type":"post","link":"https:\/\/www.myconstructionexpert.com\/blog\/indemnification-provision-held-enforceable-in-alabama\/","title":{"rendered":"Proportional Fault Indemnification Provisions Held Enforceable in Alabama"},"content":{"rendered":"\n

Mason Rollins | BuildSmart<\/a><\/p>\n\n\n\n

The Alabama Supreme Court found that an indemnification provision<\/a> was enforceable that required a subcontractor to indemnify a general contractor on a proportional-fault basis against liability for death or personal injury.\u00a0<\/p>\n\n\n\n

JohnsonKreis Construction Company, Inc. subcontracted with Howard Painting, Inc. to perform work on a hotel project in Birmingham, Alabama. The subcontract included an indemnification provision that required Howard to indemnify JohnsonKreis for \u201cpersonal injury, death [\u2026] and\/or property damage arising out of or related to Subcontractor\u2019s [\u2026] negligence or fault [\u2026] but only to the proportional extent of Subcontractor\u2019s responsibility for same.<\/em>\u201d The subcontract also required Howard to name JohnsonKreis as an additional insured. During the project, an employee of one of Howard\u2019s subcontractors died after falling from a window on an upper floor of the hotel.  The deceased employee\u2019s estate filed a lawsuit against JohnsonKreis and Howard.<\/p>\n\n\n\n

Disputes arose between Howard and JohnsonKreis regarding the scope of indemnity and coverage.  JohnsonKreis and its insurer sued Howard and its insurer for breach of the subcontract for various claims, including (a) failing to comply with safety protocols, (b) failing to comply with stated insurance requirements (which included naming JohnsonKreis as an additional insured), (c) bad faith against Howard\u2019s insurer, and (d) subrogation\/contribution. <\/p>\n\n\n\n

Howard argued in its motion for summary judgment that JohnsonKreis was not entitled to indemnification because Alabama does not permit the apportionment of damages among joint and several tortfeasors. The trial court agreed with Howard\u2019s argument and entered summary judgment in its favor.  <\/p>\n\n\n\n

JohnsonKreis and its insurers appealed. The Alabama Supreme Court held that the subcontract\u2019s proportional indemnification provision was valid and enforceable and reversed the trial court. Specifically, the court explained:<\/p>\n\n\n\n

\n

It is true, as [Howard] argues, that the damages available on a wrongful-death claim under Alabama law are punitive in nature and that a wrongful-death plaintiff is entitled to a single recovery that \u201ccannot be apportioned [by a jury] among joint tort-feasors,\u201d i.e., neither Alabama\u2019s wrongful-death statute, see \u00a7 6-5-410, Ala. Code 1975, nor our common law provides for indemnity or contribution in a wrongful-death case. Tatum v. Schering Corp.<\/em>, 523 So. 2d 1042, 1045 (Ala. 1988). However, this is not a wrongful-death case \u2014 it is a contractual dispute based on the language of a particular subcontract agreement \u2014 and that general rule may be altered by an indemnification agreement between the parties. See Holcim (US), Inc. v. Ohio Cas. Ins. Co.<\/em>, 38 So. 3d 722, 728 n.1 (Ala. 2009) (\u201cHere, the indemnity agreement is part of a contractual relationship between two parties, and the dispute between them is not one of a claimant and a tortfeasor.\u201d). Specifically, as we most recently reiterated in Mobile Infirmary Ass\u2019n v. Quest Diagnostics Clinical Laboratories, Inc.<\/em>, 381 So. 3d 1133 (Ala. 2023), this Court has recognized that \u201cparties may enter into agreements that allow an indemnitee to recover from the indemnitor even for claims resulting solely from the negligence of the indemnitee,\u201d i.e., this Court has recognized that parties may freely reach \u201ca contractual agreement providing a form of otherwise barred joint-tortfeasor contribution.\u201d 381 So. 3d at 1141. See also Holcim<\/em>, 38 So. 3d at 729 (\u201c[I]f two parties agree that the respective liability of the parties will be determined by some type of agreed-upon formula, then Alabama law will permit the enforcement of that agreement as written.\u201d), and Parker Towing Co. v. Triangle Aggregates, Inc.<\/em>, 143 So. 3d 159, 167 (Ala. 2013) (\u201cThe general rule in Alabama is that, in the absence of a statutory or contractual basis otherwise, there is no contribution or indemnity among joint tortfeasors.\u201d (emphasis added)). Cf. Industrial Tile, Inc. v. Stewart<\/em>, 388 So. 2d 171, 176 (Ala. 1980) (\u201c[I]f the parties enter into an agreement whereby one party agrees to indemnify the other, including indemnity against the indemnitee\u2019s own wrongs, if expressed in clear and unequivocal language, then such agreements will be upheld.\u201d). In fact, in Mobile Infirmary<\/em>, supra, the main opinion specifically referenced the legality and the enforceability of an agreement requiring \u201cthat each party was required to indemnify the other for any proportional share of fault in the case of potential joint liability\u201d \u2014 almost the exact language included in the subcontract agreement at issue in this case. 381 So. 3d at 1143.<\/p>\n\n\n\n

Thus, the subcontract agreement, to the extent that it required Howard to indemnify JohnsonKreis against liability for personal injury or death occurring on the project site to the proportional extent of Howard\u2019s responsibility for such injury and death, appears, contrary to the trial court\u2019s sole finding, to have been valid and enforceable under Alabama law. Accordingly, the trial court\u2019s decision is due to be reversed.<\/p>\n<\/blockquote>\n\n\n\n

The Alabama Supreme Court remanded the case to the trial court for further proceedings. A copy of the court\u2019s entire decision can be found\u00a0here<\/a>.<\/p>\n\n\n\n

\n\n\n\n

When one of your cases is in need of a construction expert, estimates, insurance appraisal or umpire services in defect or insurance disputes – please call Advise & Consult, Inc. at 888.684.8305, or email experts@adviseandconsult.net<\/a>.<\/strong><\/p>\n\n\n\n

Republished with permission. The article, \u201cProportional Fault Indemnification Provisions Held Enforceable in Alabama
\u201d was originally published on BuildSmart by Bradley Arant Boult Cummings LLP. Copyright 2025.<\/p>\n","protected":false},"excerpt":{"rendered":"

Mason Rollins | BuildSmart The Alabama Supreme Court found that an indemnification provision was enforceable that required a subcontractor to indemnify a general contractor on a proportional-fault basis against liability for death or personal injury.\u00a0 JohnsonKreis Construction Company, Inc. subcontracted with Howard Painting, Inc. to perform work on a hotel project in Birmingham, Alabama. The… Continue reading Proportional Fault Indemnification Provisions Held Enforceable in Alabama<\/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":[9],"tags":[9895,517,224,10742],"class_list":["post-904343","post","type-post","status-publish","format-standard","hentry","category-construction-contracts","tag-advise-consult","tag-alabama","tag-construction-contract","tag-indemnification-provision","entry"],"jetpack_publicize_connections":[],"yoast_head":"\nProportional Fault Indemnification Provisions Held Enforceable in Alabama - 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