Opinion ID: 2760779
Heading Depth: 3
Heading Rank: 2

Heading: Brighton’s Damages from Aegis’s Omission

Text: Aegis’s omission caused Brighton to suffer damages consisting of prejudgment interest on the settlement amount, payment to Avalon for its attorneys’ fees and expenses, and legal fees and expenses for Brighton.
For example, Brighton had to pay Avalon the prejudgment interest on the funds paid to Ms. Miller. These payments were the indirect result of Aegis’s failure to provide a defense when requested by Brighton.
Brighton not only had to reimburse Avalon for the funds paid to Ms. Miller and for prejudgment interest, but also had to pay Avalon for its attorneys’ fees and (either in the district court or our court) that it can recoup or offset its losses from Brighton as a result of Brighton’s “omission” in the Brighton-Avalon agreement. 3 The district court reasoned that the legal fees had resulted directly or indirectly from Aegis’s “acts, errors or omissions.” Appellant’s App., vol. III at 536-37. This rationale led Aegis to argue that Brighton’s refusal to defend Avalon constituted an intervening act severing the “causative link” between Aegis’s alleged wrongdoing and Brighton’s damages. Appellant’s Opening Br. at 25. This argument could conceivably apply to Aegis’s “act” (pushing Ms. Miller in her wheelchair), but not its “omission” (refusing Brighton’s request to assume Avalon’s defense). Aegis’s omission came after Brighton had declined to defend Avalon. -10- expenses. Avalon would not have had to pay for attorneys’ fees and expenses if Aegis had agreed to provide Brighton with a defense. Thus, Brighton’s duty to reimburse Avalon for its attorneys’ fees and expenses constituted losses or liabilities resulting indirectly from Aegis’s failure to provide a defense.
Brighton incurred expenses not only to reimburse Avalon, but also to pay Brighton’s own attorneys’ fees and costs. Brighton would not have had to incur these fees and costs if Aegis had provided a defense. Aegis’s failure to defend Brighton, an “omission” under the indemnity clause, triggered the duty to indemnify Brighton for its indirect losses. These losses included Brighton’s own attorneys’ fees and costs. Thus, Brighton is entitled to recoup these fees and costs from Aegis under the indemnity clause. -11-