The attorneys at MC Attorneys understand that the real purpose of a contractual indemnification clause is to provide a party with a contractual remedy for recovering post-closing monetary damages arising from issues such as:
- Breach of a covenant;
- Breach of representation;
- Breach of warranty;
- Claims by third parties against the indemnitee; or
- Other claims provided in the agreement.
Common law indemnification is common, and indemnification clauses in construction contracts are an industry standard. Indemnification provisions provide a way for the parties to the contract to allocate losses, and our surety attorneys will represent our clients’ interests in successfully resolving a claim. But when negotiations do not resolve an issue; our surety attorneys will represent the surety in litigation for indemnity and collection. If the other party to a contract refuses to honor the indemnification clause, MC Attorneys will help you enforce your rights and bring a separate law suit if required.
For example, in a breach of contract claim, the plaintiff may look to recover for a solvent defendant to pursue where he or she may not be aware of the party having the resources to pay the damages.
Benefits of Indemnity Provisions
Our surety attorneys help draft the terms for contractual indemnity and will be certain to include the many protections available. For example, a claimant may be able to recover additional compensation under indemnity provision—such as attorneys’ fees and other expenses—than might be recovered under common law. Conversely, indemnity provisions can also restrict claimants to specific remedies or damages that are more narrow than those available under common law claims.
The background and knowledge of our attorneys in drafting indemnity provisions gives them the ability to enforce these agreements and to collect the amounts due to developers, architects, general contractors, subcontractors, and others in the construction project who would rely on an indemnification provision in the case of an injury or a claim for a design defect or improper installation.
Enforcement and Collection of Indemnity Agreements
A surety may need representation in a dispute over liability when its principal is not liable or because the surety has a defense to the claim of the oblige. We also help contractors and owners with surety issues. MC Attorneys pursue all indemnity claims against those who contributed to the underlying loss to make our clients whole and to allow them to move ahead with their business operations.