Opinion ID: 2638417
Heading Depth: 4
Heading Rank: 1

Heading: The plain language of the indemnity clause in the Krogstad/UAL sublease requires UAL to indemnify and defend the Krogstads against the state's third-party claim.

Text: UAL argues that the indemnity provision, section 7.5(b) of the Krogstad/UAL sublease, does not require it to indemnify or defend the Krogstads against the state's third-party claim. [18] The provision requires UAL to indemnify the Krogstads from all suits, actions, damages, liability, and expenses in connection with ... personal injury... arising from or out of any occurrence at the Premises, or from the use by [UAL]... of the Premises .... (Emphasis added.) UAL argues that the Krogstads' potential liabilityon a claim asserted by Sanders against the state and tendered to the Krogstads for defense and indemnitydid not aris[e] from or out of any occurrence at or UAL's use of the premises. We are unpersuaded. The state's third-party complaint against the Krogstads clearly arose from UAL's operation of the baggage cart in connection with UAL's use of the premises subleased to UAL by the Krogstads. UAL argues that the indemnity provision of the state/Krogstad lease is broader than that of the Krogstad/UAL sublease because the Krogstads contracted to indemnify the State for any and all claims related to the property, even for the State's own negligence. UAL assumed no such broad obligations to the Krogstads. UAL is correct that it owes the Krogstads no duty to indemnify them for their own negligence. [19] But the Krogstads' liability to the state was not due to the Krogstads' negligence. UAL also argues that the term Lessor in section 7.5(b) of the Krogstad/UAL sublease includes the state. The relevant portion of section 7.5(b) exempts UAL from liability caused by the negligence of Lessor, its agents, contractors, employees, servants, invitees, or licensees. UAL states in a parenthetical comment in its brief that this passage includes the Krogstads and the Krogstad[s'] lessor-the State of Alaska.... This reading would excuse UAL from its indemnity duty, but we reject UAL's interpretation. The Krogstad/UAL sublease clearly defines Lessor to be Sam and Rebecca Fox-Krogstad. [20] There is no support in the record for UAL's interpretation of the term Lessor. And UAL's interpretation is at odds with the plain meaning of the term Lessor as it appears in the Krogstad/UAL sublease.