Opinion ID: 1660917
Heading Depth: 2
Heading Rank: 3

Heading: The Duty to Indemnify Stone for the Expenses of Defense

Text: In pertinent part, the subcontract between Stone and Star required Star to indemnify and save harmless and exonerate Stone from certain claims. We are aware that it appears to be well settled in other jurisdictions that an indemnitee is entitled to recover, as part of the damages, reasonable attorney fees which it is compelled to pay as a result of suits against it in reference to the matter against which it is indemnified. 42 C.J.S. Indemnity § 13(d) (1968). The indemnification of attorney fees is, however, subject to certain limitations. For instance, the allowance of attorney fees is limited to the defense of the claim indemnified against and does not extend to services rendered in establishing the right of indemnity. 41 Am.Jur.2d Indemnity § 36 (1955); see, e.g., United General Ins. Co. v. Crane Carrier Co., 695 P.2d 1334 (Okla.1984); [ E.C. ] Ernst, [ Inc. v. Manhattan Constr. Co., 551 F.2d 1026 (5th Cir.1977)]. Furthermore, there is considerable authority holding that an indemnitee is precluded from recovering attorney fees where the indemnitee has been required to defend accusations which encompass his own separate wrongful acts. See, e.g., Farr v. Armstrong Rubber Co., 288 Minn. 83, 179 N.W.2d 64 (1970); Piedmont Equipment Co. v. Eberhard Mfg. Co., 99 Nev. 523, 665 P.2d 256 (1983). In other words, indemnification, including attorney fees, is allowed where one is defending claims predicated solely upon another defendant's negligence; however, where one is defending for his own benefit, an award of attorney fees will not be allowed. Jack Smith Enters. v. Northside Packing Co., 569 So.2d 745, 746 (Ala.Civ.App.1990) (emphasis in original). See generally Winn-Dixie Montgomery, Inc. v. Stimpson, 574 So.2d 782, 783-84 (Ala.1991) (indemnity agreement providing that [Winn Dixie] agrees to indemnify and save harmless the Landlord from any claim or loss entitled Winn Dixie to indemnification for all expenses incurred as a result of the judgment ..., including a reasonable attorney fee); and Freeman Wrecking Co. v. City of Prichard, 530 So.2d 235, 236 (Ala.1988) (indemnity agreement providing that [t]he City of Prichard agrees to hold FREEMAN WRECKING COMPANY, INC., harmless, and shall further indemnify it for any liability entitled the indemnitee to an award of attorney fees). Thus, Stone's right to indemnification by Star extends to Stone's expenses of defense, including attorney fees, attributable specifically to Stone's defense against the Clines' claims and accruing after, and only after, Stone demanded indemnification from Star. Accordingly, the summary judgment, insofar as it denies Stone any recovery for attorney fees and other expenses of defending the Clines' claims, is due to be reversed.