Answers to So You Think You Know The Law…

January 2013

If a subcontractor learns through the grapevine that the general contractor on a commercial building project has been sued by the property owner for defects implicating the subcontractor’s scope of work, the subcontractor has an immediate obligation to indemnify the general contractor if the subcontract so provides.

False: The California Legislature placed the onus on the party seeking indemnification to notify the indemnitor of the demand for indemnity. California Civil Code §2782.05 provides that the subcontractor has no obligation to defend or indemnify the general contractor on a commercial project until the general contractor provides a written tender of the claim. The written tender must also contain information that shows the subcontractor’s scope of work is implicated.* *See California Civil Code §2782.05(b) for exclusions to applicability of this section. Should you have any questions regarding contractual indemnity or would like to have us review your contracts to ensure that they do not run afoul of the changes in the law in 2013 please feel free to contact John J. Duffy in our Encino office. Return to Newsletter.

Please Note: This article is necessarily general in nature and is not a substitute for legal advice with respect to any particular case. Readers should consult with an attorney before taking any action affecting their interests.