Assignee of Indemnification Rights May Sue Indemnor

A landowner ('L') contracted with contractor ('C') to have a factory plant built on its land, and the contract contained defense and indemnity provisions and that the contract may be assigned. L later sold the property to a third party ('3P'). An employee of 3P was killed and brought a wrongful death action. 3P tendered the action to C for defense, but C refused to defend 3P. 3P defended itself against the action and then sued C for indemnity. Held: an assignee of contract indemnification rights stands in the shoes of the indemnitee. 3P may recover its defense costs from C.
Robin Mashal
Los Angeles, California
Commercial Litigation
(310) 286-2000

I am a litigation lawyer, licensed to practice law in the State of California. You can reach me by phone at (310) 286-2000.