I wrote about these contractual issues the week before Thanksgiving. I received so many emails that I thought it best to flesh these topics out a bit more. Also, some of these headings are from the anonymous “comments” section on this site, so I can’t attribute them (and I’ve also edited them for language).
1) “Real life example: Company A hired to refurbish shipping vessel owned by Company B. Contract obligated Company B to indemnify Company A fully, worded broadly enough and specifically enough to require indemnification for Company A’s own fault. Company A sets the boat on fire through clearly negligent actions and then tries to put it out with a garden hose. Fifth Circuit Court of Appeals tells Company B that yes, Company A was at fault; yes, you are out quite a bit for the value of the boat and the lost income, but you must eat it as you have to indemnify Company A for your own claim.”
Why on Earth someone would agree to indemnify a Customer for their own negligence is beyond me. I have been through this scenario many times, and I always inquire as to how I am expected to indemnify my Customer for its own negligence. In the B2B arena, indemnity should be limited (if possible) to third party claims against the potential indemnitee, at which point the indemnitor would take on the payment.
This raises another point: even if I indemnify you, who is going to defend you?
So, the Customer wants you to take on unlimited liability for breach of confidentiality, indemnify (and hold harmless) for any and all bad acts of your employees, and to carry a multi-million dollar insurance policy. What do you do?
First, begin by triaging these from simplest to more complicated. During a negotiation it can be helpful to appear to “give” as much as possible up front when you’re down to a few points. This way, when the final hot button items arise, you appear reasonable.
Insurance requirements are usually no-brainers, and as long as the amounts demanded are not grotesquely high, your Risk folks will approve the proposed language with very light editing, if any. Today, it is also not unusual for the Customer to demand to be named as a payee in the event of a loss; this is often fine, and usually not an issue. More practice pointers, after the jump….
Hurricane Irene: She came. She saw. She blew. She sucked? In the wake of HurricaneTropical Storm Irene, people have been expressing their displeasure with the way this natural disaster panned out. Apparently, we’re now so bitter as a society that we’re wishing greater harm upon ourselves. That’s a little sick, no?
After days of preparation, there is still a lot of damage to deal with in the aftermath of the storm. So, for all of you Irene naysayers, consider these facts. Across the Eastern Seaboard, millions of people are without power. As of this morning, at least 21 people have lost their lives. We’re looking at estimated property losses of $7 billion.
UPDATE (1:10 PM): The property losses could actually run as high as $13 billion, meaning that total economic losses could reach $14 billion to $26 billion (because “the rule of thumb is that total economic losses are equal to about twice property losses”). See this interesting post, entitled “How Irene Lived Up to the Hype,” by Nate Silver.
In the legal world, we know that it pays to be prepared, but there are some things that we just can’t work around….
If this tiger reminds you of your pet cat, you are an idiot.
There’s a Chris Rock joke about the Siegfried & Roy tiger attack: “That tiger didn’t go crazy, that tiger went tiger.” With that in mind, I bring you this latest decision from the Tenth Circuit, via the National Law Journal:
An insurance company does not have to pay a Kansas family $100,000 for an accident in which a Siberian tiger attacked and killed their daughter during her senior photo shoot, a federal appeals court ruled this week.
On Monday, the 10th U.S. Circuit Court of Appeals held that Safeco Insurance Company of America does not have to pay damages in a wrongful death suit because the homeowners policy bought by the tiger’s owners excluded coverage for business pursuits.
I’ll admit, it took me a second to appreciate what was going on here. As it turns out, the only actor that behaved reasonably in this situation was the tiger (and the Tenth Circuit)….
Ed. note: The Asia Chronicles column is authored by Kinney Recruiting. Kinney has made more placements of U.S. associates, counsels and partners in Asia than any other recruiting firm in each of the past seven years. You can reach them by email: email@example.com.
It’s that time of year again when JDs are starting to apply for 2L summer jobs and 2L summers are deciding which practice area to focus on.
For those JDs with an interest in potentially lateraling to or transferring to Asia in the future, please feel free to reach out to Kinney for advice on firm choices, interviewing and practice choices, relating to future marketability in Asia, or for a general discussion on your particular Asia markets of interest. This is of course a free of cost service for those who some years in the future may be our future industry contacts or perhaps even clients.
For some years now Kinney’s Asia head, Evan Jowers, has been formally advising Harvard Law students with such questions, as the Asia expert in Harvard Law’s “Ask The Experts Market Program” each summer and fall, with podcasts and scheduled phone calls. This has been an enjoyable and productive experience for all involved.
Whether you’re fresh off the bar exam or hitting your stride after hanging a shingle a few years ago, one thing’s for certain: independent attorneys who start a solo or small-law practice live with a certain amount of stress.
Non-attorneys would think the stress comes from preparing for a big trial, deposing a hostile witness, or crafting the perfect contract for a picky client.
But that’s nothing compared to the constant, nagging, real-life kind, the kind you get from the day-to-day grind of being a law-abiding attorney.
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Additional information can be located on our website, at www.sgtlaw.com.