Indemnification


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Indemnification

Used in insurance policy agreements as to compensation for damage or loss. In the context of corporate governance, Director Indemnification uses the bylaws and/or charter to indemnify officers and directors from certain legal expenses and judgments resulting from lawsuits pertaining to their conduct.

Indemnification

The collection of money for damages. For example, indemnification occurs in insurance when the policyholder receives money to compensate for an insured event. Likewise, a company may receive indemnification from an employee, especially a major executive, if the company suffers damages in a lawsuit as a result of the employee's illegal or unethical actions.

indemnification

The process of shifting a loss from one party to another either because of an express agreement by the parties or because the law requires it under the circumstances.

Example: A purchaser of real estate discovers the property is subject to a lien that was placed against it prior to sale and pays the lien in order to avoid foreclosure; then the purchaser is entitled to indemnification, or reimbursement, from the prior owner who breached the warranties in the deed.

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Many subcontractors are asking for a mutual indemnification obligation from general contractors they want the same indemnification benefit the general contractor is receiving.
"The issue with the individual officers is very factually specific and in my opinion, they're putting the cart before the horse because it's going to be very difficult for a judge to make a blanket ruling that there can be no indemnification of the officers' tortious conduct as a matter of law," said Steven D.
* Should think carefully about advancement and indemnification rights for former directors and whether to require former directors to repay advancement amounts if it is determined that they are not entitled to indemnification, as the law is not clear on this point in many jurisdictions.
Many clients use defense and indemnification clauses in an attempt to control their own litigation costs and ensure their ability to recoup damages.
Another option is to ask vendors to agree to the indemnification clause, shifting the risk, often appropriately, to them, he said.
the concept of forced indemnification, and we offered the committee a variety of reasons why forced indemnification would not likely be lawful and certainly wouldn't be good policy," he added.
"Today, an indemnification policy from RPX turns an uncertain risk into a predictable and manageable cost of doing business."
It may also be desirable to post security when an amount in dispute is subject to a tax indemnification provision.
This Part 3 discusses three things to consider early in any litigation matter--insurance, indemnification, and litigation holds.
(Lawrence had done pro bono work for AWUM.) After AWUM declined to tender advance indemnification to Sinuon, the court dismissed the case and awarded her about $25,000 in costs and attorney fees.
Toward the end of that column, I wrote these three words: "indemnification and insurance." We have certainly addressed these words in prior installments of Risk Management 101.
the NDFP said in a statement published on its website Monday night that it has requested third party facilitators "to expedite the public dispensation of indemnification."