In the interpretation of a contract of indemnity, the following rules are to be applied, unless a contrary intention appears:
1.Upon an indemnity against liability, expressly, or in other equivalent terms, the person indemnified is entitled to recover upon becoming liable;
2.Upon an indemnity against claims, or demands, or damages, or costs, expressly, or in other equivalent terms, the person indemnified is not entitled to recover without payment thereof;
3.An indemnity against claims, or
demands, or liability, expressly, or in other equivalent terms, embraces the costs of defense against such claims, demands, or liability incurred in good faith, and in the exercise of a reasonable discretion;
4.The person indemnifying is bound, on request of the person indemnified, to defend actions or proceedings brought against the latter in respect to the matters embraced by the indemnity, but the person indemnified has the right to conduct such defenses, if he chooses to do so;
5.If, after request, the person indemnifying neglects to defend the person indemnified, a recovery against the latter suffered by him in good faith, is conclusive in his favor against the former;
6.If the person indemnifying, whether he is a principal or a surety in the agreement, has not reasonable notice of the action or proceeding
against the person indemnified, or is not allowed to control its defense, judgment against the latter is only presumptive evidence against the former;
7.A stipulation that a judgment against the person indemnified shall be conclusive upon the person indemnifying, is inapplicable if he had a good defense upon the merits, which by want of ordinary care he failed to establish in the action.
Notes of Decisions
People ex rel. Harris v. Shine, 16 Cal. App. 5th 524 (Cal. Ct. App. 2017).
· cites it 2× “from and against any and all liens, claims, liabilities and expenses, including reasonable attorneys' fees, for which the Trustee may be liable or subjected, arising out of, emanating from or made with respect to the trust or any assets or liabilities thereof .”
Gray v. Zurich Ins. Co., 419 P.2d 168 (Cal. 1966).
· cites it 2× “2d 816 ]; Civ. Code, § 2778.) *280 Defendant argues, however, that the instant situation should be distinguished from that case because here the judgment has not necessarily been rendered on a theory within the policy coverage.”
Myers Bldg. Indus., Ltd. v. Interface Tech., Inc., 13 Cal. App. 4th 949 (Cal. Ct. App. 1993).
· cites it 2× “” (Civ. Code, § 2778, subd. 3.) An indemnitor in an indemnity contract generally undertakes to protect the indemnitee against loss or damage through liability to a third person.”
Mt. Hawley Ins. v. Fed. Sav. & Loan Ins., 695 F. Supp. 469 (C.D. Cal. 1987).
· cites it 3× “Hawley policies are liability policies requiring the insurers to pay expenses on behalf of the insureds as they are incurred.”
Safeco Ins. Co. of Am. v. Joseph C. Schwab, 739 F.2d 431 (9th Cir. 1984).
· cites it 3× “The district court applied Cal. Civ.Code § 2778(2) (West 1974), which provides that unless a contrary intention appears, “[u]pon an indemnity against claims .”
Regan Roofing Co. v. Superior Court, 24 Cal. App. 4th 425 (Cal. Ct. App. 1994).
· cites it 3× “) Civil Code section 2778 provides rules for interpreting an agreement of indemnity which are to be applied unless a contrary intention appears; subdivision 4 of that section provides: “The person indemnifying is bound, on request of the person indemnified, to defend actions or…”
Sunset-Sternau Food Co. v. Bonzi, 389 P.2d 133 (Cal. 1964).
· cites it 4× “The implied promise of indemnity and reimbursement applies only to the actual loss and not to the liability incurred. [10] ( Walkof v. Fox (1915) 90 Misc.”
Crawford v. Weather Shield Mfg., Inc., 187 P.3d 424 (Cal. 2008).
“Safeway thereupon retained its own attorney to defend the workers’ action, and later sought reimbursement of its defense costs from King.”
Zalkind v. Ceradyne, Inc., 194 Cal. App. 4th 1010 (Cal. Ct. App. 2011).
“Upon an indemnity against liability, expressly, or in other equivalent terms, the person indemnified is entitled to recover upon becoming liable; [50 2. Upon an indemnity against claims, or demands, or damages, or costs, expressly, or in other equivalent terms, the person…”
Cal. Civil Code § 2778(1): 2 cases
Mt. Hawley Ins. v. Fed. Sav. & Loan Ins., 695 F. Supp. 469 (C.D. Cal. 1987).
“Hawley policies are liability policies requiring the insurers to pay expenses on behalf of the insureds as they are incurred.”
Cal. Civil Code § 2778(2): 2 cases
Safeco Ins. Co. of Am. v. Joseph C. Schwab, 739 F.2d 431 (9th Cir. 1984).
“The district court applied Cal. Civ.Code § 2778(2) (West 1974), which provides that unless a contrary intention appears, “[u]pon an indemnity against claims .”
Cal. Civil Code § 2778(3): 2 cases
Cal. Civil Code § 2778(4): 2 cases
Cal. Civil Code § 2778(6): 2 cases
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