Indemnity Action

Indemnity Action

 

in civil law and procedure, a claim for compensation for money spent addressed to a court or arbitration tribunal by an organization or a citizen who has performed an obligation for an obligor or some other person. For example, in Soviet law an organization or citizen responsible for damage must, upon an indemnity action by a social insurance or social welfare agency, reimburse the agency for the amount of benefits or pensions paid to a victim for illness or injury caused through the fault of the organization or citizen and, in the case of the victim’s death, those benefits or pensions paid to the persons indicated by law. In accordance with Article 81 of the Basic Principles of Civil Legislation of 1961, an insurance organization that has paid insurance compensation on property insurance has the right to bring a claim for a sum equal to or less than this amount against the person responsible for the damage. Article 93 of the Basic Principles of Labor Legislation gives the court the right to obligate an official guilty of illegally dismissing or transferring a worker to another job to indemnify the loss caused to the organization that paid for the time of forced absence or performance of a lower-paid job.

In arbitration practice the indemnity action is used in relations between enterprises and other organizations; an obligor-organization that has paid a certain sum for failure to perform or improper performance of a contract must be reimbursed by the organization directly at fault for violation of the contractual obligation, for example, one that supplied poor-quality or incomplete products.

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References in periodicals archive ?
The Guzman decision provided defendants with a bright line of demarcation for when indemnity action claims accrue and, thus, when the two-year limitations period commences to run.
(8) S moves to dismiss G's third-party complaint, arguing that G failed to file its third-party complaint within the two-year statute of limitations applicable to indemnity actions. Should the court grant S's motion?
(29) The practitioner whose client has made such a payment should be aware of the strict time limitations applying to indemnity actions and would be prudent not to let a ripe claim for indemnity languish, especially where the indemnitee is not a party to the lawsuit.
2001) ("[M]erely because [the issuer's] tort and contract claims seek to recover damages that could be recoverable in a state law indemnity action do not convert these claims into impermissible indemnity claims under the federal securities laws."), and In re Rite Aid Corp.
As to structure and purpose, the court reasoned that the employer retained immunity from litigation by workers and that this would not be unduly undermined by an indemnity action by the power company.
According to the Haggerty court, permitting the indemnity action was "a more harmonious resolution of the conflict between the two statutes than gutting the power line statute in favor of the workers' compensation laws." See 989 P.2d at 877.
Traditionally, an indemnitee's fault precluded an indemnity action, but since fault has ceased to play a significant role in product liability cases, the theoretical chances for obtaining indemnity have increased significantly.
The New Jersey Supreme Court reversed, however, analyzing the commercial and equitable aspects of an indemnity action. It acknowledged that in a strict liability action, liability extends beyond the manufacturer to all entities in the chain of distribution.
Prior to joining Meltzer Lippe, she was an associate with Torre, Lentz, Gamell, Gary & Rittmaster, representing construction sureties in indemnity actions. She also worked for Nixon Peabodys commercial litigation group, where her practice focus was on products liability, insurance claims and contractual issues.
Roth explained that the model that Whole Foods uses incorporates behavioral factors such as slip-and-fall claims, and indemnity actions into the analysis.
* Insurance coverage, bad faith litigation, and third-party indemnity actions against insurers arising under policies issued to businesses, such as claims arising under a commercial general liability policy, commercial property policy, or title insurance policy, not including claims where the underlying dispute is a personal injury claim, unless a court determines that the personal injury insurance claim is business-related and complex.
* Insurance coverage disputes, bad faith suits, or third party indemnity actions against an insurer arising under a policy issued to a business, such as a claim arising under a commercial general liability policy or commercial property policy;