Indemnity Clause within Construction Contract in Mobile Alabama
Indemnity is an undertaking whereby one agrees to indemnify another upon the occurrence of an anticipated loss. For example, as a general contractor you should require your plumber to indemnify you (via contract) for any loss caused by a defect in his work. Put simply, if you receive a complaint alleging defective plumbing the plumber must assume your defense as it pertains to his work and any resulting damage.
In Alabama, two types of indemnity obligations exist, common law and contractual. Here, we deal with contractual indemnity. Essentially, the subcontractor is required (under contract) to bear the loss associated with identified perils (personal injury, death, damage to property, etc.) that could be attributed to the general contractor. Most often the indemnity provision will request that the subcontractor also cover the cost of defense (attorney fees, etc.) as a result of claims made against the general contractor. Note, in Alabama, such provisions are carefully scrutinized by our courts, and such an agreement is enforceable only if the provision is “unambiguous and unequivocal.” Further, ambiguous language in an indemnity agreement is always construed against the drafter.
