{"id":11968,"date":"2018-01-10T04:50:21","date_gmt":"2018-01-10T04:50:21","guid":{"rendered":"https:\/\/reunitethestates.org\/?page_id=11968"},"modified":"2018-01-10T20:28:29","modified_gmt":"2018-01-10T20:28:29","slug":"indemnity","status":"publish","type":"page","link":"https:\/\/reunitethestates.org\/?page_id=11968","title":{"rendered":"Indemnity – a duty to make good any loss, damage, or liability incurred by another, or the right of an injured party to claim reimbursement for its loss, damage, or liability from a person who has such a duty"},"content":{"rendered":"

indemnity<\/span>:<\/strong><\/span>
\nn<\/em>. (15c)<\/span><\/p>\n

l. A duty to make good any loss<\/a>, damage, or liability<\/a> incurred by another. <\/span><\/strong><\/p>\n

2. The right of an injured party to claim reimbursement for its loss, damage, or liability<\/a> from a person who has such a duty. <\/span><\/strong><\/p>\n

3. Reimbursement or compensation<\/a> for loss<\/a>, damage, or liability<\/a> in tort; especially, the right of a party who is secondarily liable to recover from the party who is primarily liable for reimbursement of expenditures paid to a third party for injuries resulting from a violation of a common-law duty.\u00a0<\/strong> Cf. CONTRIBUTION (6), (7). \u2014 indemnitory<\/strong><\/em><\/span>, adj<\/em>. [1]
\n<\/span><\/p>\n

1. A term inclusive of two primary concepts: (1) compensation in money or property for a loss suffered; (2) a contract to save another from the legal consequences of the conduct of one of the parties or of a third person.\u00a0 Also inclusive in a proper sense of the security by way of deposit or bond furnished for the performance of an undertaking to save another harmless.\u00a0 Builders Supply Co. v McCabe<\/em>, 366, 27 Am J1st Indem \u00a7 2<\/span>.<\/span><\/strong><\/p>\n

An obligation or duty resting on one person to make good any loss or damage another has incurred while acting at the request of the former or his benefit.\u00a0 27 Am J1st Indem \u00a7 2<\/span>.<\/span><\/strong><\/p>\n

The right of one who has been compelled to pay that which another person should have paid.\u00a0 Security to protect against loss in assuming a status such as that of a guarantor or surety.\u00a0 From the standpoint of an insurance contract: \u2014 the stipulated desideratum to be paid to the insured in case he suffers loss or damage through the risk specified and covered by the contract.\u00a0 Physicians’ Defense Co. v Cooper<\/em> (CA9 Cal) 199 F 576<\/span>.<\/strong> [2]<\/span><\/p>\n

1. A contract to compensate another in money or property for a loss she might suffer as the result of conduct which might occur; a contract of indemnity.\u00a0 EXAMPLE: a performance bond.<\/span><\/strong><\/p>\n

2. Compensation paid under a contract of indemnity.<\/span><\/strong><\/p>\n

3. A benefit payable under an insurance policy.<\/strong> <\/span>
\n\u00a0\u00a0\u00a0\u00a0 See indemnity insurance<\/em>.\u00a0 Also see double indemnity<\/em>. [3]<\/span><\/p>\n

Related Terms:<\/span><\/strong><\/span><\/p>\n

indemnify<\/span><\/a> – to compensate or reimburse a person for a past or future loss or damage caused by one’s own or a third party’s act or default.<\/span><\/strong><\/p>\n

indemnitee<\/span><\/a> – someone who receives indemnity from another.<\/span><\/strong><\/p>\n

indemnitor<\/span><\/a> – a person whom indemnifies another. <\/strong>\u2014 aka indemnifier<\/strong><\/em><\/span>.<\/span><\/p>\n

Various Forms of Indemnification:<\/span><\/strong><\/p>\n

contractual indemnity<\/span>: <\/strong><\/span>(1924) <\/span>Indemnity that is expressly provided for in an agreement.<\/span><\/strong><\/p>\n

double indemnity<\/span>:<\/strong><\/span> (1859) The payment of twice the basic benefit in the event of a specified loss, especially as in an insurance contract requiring the insurer to pay twice the policy\u2019s face amount in the case of accidental death.<\/strong><\/span><\/p>\n

equitable indemnity<\/span>:<\/strong> <\/span>(1809) 1. A doctrine allowing a defendant in a tort action to allocate blame to a codefendant or cross-defendant, and thereby to proportionally reduce legal responsibility, even in the absence of contractual indemnity.\u00a0 *\u00a0 In this sense, equitable indemnity applies only among defendants who are jointly and severally liable to the plaintiffs.<\/strong> \u2014 aka implied indemnity<\/strong><\/em><\/span>; doctrine of equitable indemnity<\/strong><\/em><\/span>.\u00a0 2. See implied contractual indemnity.\u00a0 3. See implied indemnity.<\/span><\/p>\n

implied contractual indemnity<\/span>:<\/strong><\/span> (1958) Indemnity that is not expressly provided for by an indemnity clause in an agreement but is nevertheless determined to be <\/strong><\/span>reasonably intended by the parties, based on equitable considerations. <\/strong>\u2014 aka equitable indemnity<\/strong><\/em><\/span>.<\/span><\/p>\n

implied indemnity<\/span>:<\/strong><\/span> (1850) Indemnity arising from equitable considerations and based on the parties\u2019 relationship, as when a guarantor pays a debt to a creditor that the principal debtor should have paid.<\/strong> \u2014 aka equitable indemnity<\/strong><\/em><\/span>.<\/span><\/p>\n

indemnity against liability<\/span>:<\/strong> <\/span>(1838) A right to indemnity that arises on the indemnitor\u2019s default, regardless of whether the indemnitee has suffered a loss.<\/strong><\/span><\/p>\n

\u00a0\u00a0\u00a0\u00a0 \u201cIndemnity against Liability<\/em> \u2014 Where the indemnity is against liability, the cause of action is complete and the indemnitee may recover on the contract as soon as his liability has become fixed and established, even though he has sustained no actual loss or damage at the time he seeks to recover.\u00a0 Thus, under such a contract, a cause of action accrues to the indemnitee on the recovery of a judgment against him, and he may recover from the indemnitor without proof of payment of the judgment.<\/span>\u201d 42 C.J.S. <\/span>Indemnity \u00a7 22 (1991).<\/span><\/strong><\/p>\n

statutory indemnity<\/span>:<\/strong><\/span> (1866) Indemnity conferred by legislation.\u00a0 *\u00a0 Corporation statutes require that a corporation indemnify its personnel \u2014 in particular officers and directors \u2014 against costs incurred in the successful defense of a judicial, administrative, or investigative proceeding.\u00a0 Corporation statutes also typically <\/strong><\/span>authorize undertakings to advance defense costs to company personnel.<\/span><\/strong><\/p>\n

indemnity clause<\/span>:<\/strong><\/span> (1860) A contractual provision in which one party agrees to answer for any specified or unspecified liability or harm that the other party might incur. <\/strong>\u2014 aka hold-harmless clause<\/strong><\/em><\/span>; save-harmless clause<\/strong><\/em><\/span>.\u00a0 Cf. EXEMPTION CLAUSE. \u2018 \u2018 . \u201c<\/span><\/p>\n

indemnity contract. See CONTRACTS.<\/span><\/p>\n

indemnity costs<\/span>:<\/strong> <\/span>(1892) English law.<\/em> In civil litigation, the prevailing party\u2019s reasonable expenses, including legal fees, that the court may order the opposing party to pay as compensation in addition to any other award.<\/strong><\/span><\/p>\n

indemnity insurance: See first-party insurance under INSURANCE.
\n<\/span><\/p>\n

indemnity land<\/span>:<\/strong><\/span> (1901) 1. Public land granted to a railroad company to help defray the cost of constructing a right-of-way.\u00a0 *\u00a0 This land indemnifies a railroad company for land given in a previous grant but later rendered unavailable for railroad use by a disposition or reservation made after the original grant.\u00a0 2. Federally owned land granted to a state to replace previously granted land that has since been rendered unavailable for the state\u2019s use.<\/strong> \u2014 aka place land<\/strong><\/em><\/span>. <\/span><\/p>\n

indemnity mortgage. See deed of trust under DEED.<\/span><\/p>\n

indemnity principle<\/span>:<\/strong><\/span> (1917) Insurance<\/em>. The doctrine that an insurance policy should not confer a benefit greater in value than the loss suffered by the insured.<\/strong><\/span><\/p>\n

indemnis<\/em><\/span>:<\/strong><\/span>
\n adj. [Latin]<\/span><\/p>\n

1. Free from loss or damage; harmless.<\/strong><\/span><\/p>\n

References:<\/span><\/span><\/strong><\/p>\n

Disclaimer:<\/span><\/span><\/strong> All material throughout this website is compiled in accordance with Fair Use<\/a><\/span><\/strong>.<\/strong><\/p>\n

[1]: Black\u2019s Law Dictionary\u00a0Deluxe Tenth Edition\u00a0by Henry Campbell Black & Editor in Chief Bryan A. Garner<\/a>. ISBN: 978-0-314-62130-6<\/span><\/strong><\/p>\n

[2]: Ballantine\u2019s Law Dictionary\u00a0<\/a><\/span><\/strong>with Pronunciations
\n<\/span><\/em>Third Edition<\/span><\/strong><\/a>\u00a0by James A. Ballantine\u00a0<\/span><\/strong>(James Arthur 1871-1949).\u00a0\u00a0<\/span><\/em>Edited by William S. Anderson.\u00a0\u00a0\u00a9 1969 by THE LAWYER\u2019S CO-OPERATIVE PUBLISHING COMPANY.\u00a0 Library of Congress Catalog Card No. 68-30931<\/span><\/strong><\/p>\n

[3]: Ballantine’s Law Dictionary <\/a><\/span><\/strong>Legal Assistant Edition<\/span><\/a><\/em>
\nby Jack Ballantine\u00a0<\/span><\/strong>(James Arthur 1871-1949).\u00a0\u00a0<\/span><\/em>Doctored<\/span><\/a><\/strong>\u00a0<\/span><\/em>by\u00a0Jack G. Handler,\u00a0J.D.<\/a>\u00a0\u00a9 1994 Delmar by Thomson Learning.\u00a0 ISBN 0-8273-4874-6.<\/span><\/strong><\/p>\n

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