Common Subcontract Indemnification Provision Clauses and Nevada Limitations

Agenda

Indemnity Provisions Commonly Found in Construction Contracts Between Owners and General Contractors and in Contracts Between General Contractors and Subcontractors

• Indemnity Provisions Usually Require the General Contractor to Reimburse the Owner for Any Loss From a Claim or Claims Brought by a Third-Party Arising out of Work Performed by the General Contractor
• Indemnity Provisions Between General Contractors and Subcontractors Generally Require the Subcontractor to Reimburse the General Contractor for Any Loss From a Claim or Claims Arising out of Work Performed by the Subcontractor
• Indemnity Provisions May Impose a Duty to Defend the Indemnified Party

Types of Indemnity and Their Effect on the Contractual Relationship

• "Type I" Indemnification of a General Contractor by a Subcontractor
• "Type II" Indemnity Agreements, Which Allow a Party to Be Indemnified for Another Party's Passive, as Opposed to Active, Negligence
• "Type III" Indemnity Agreements, Which Limit Indemnification Solely to Those Circumstances Created by the Contractor Himself

Historically, Nevada Has Not Recognized Any Limitation on Contractual Indemnity Provisions

• Anti-Indemnity Statutes Common in Other States Have Not yet Reached Nevada
• Recent Case Law Has Developed Specific Limits on the Language of a Type 1 Indemnity Agreement in Order to Make That Obligation Enforceable

Credits

Faculty

Bryan M. Gragg

Snell & Wilmer L.L.P.

• Attorney in the Las Vegas office of Snell & Wilmer L.L.P.
• Regularly conducts seminars and is invited to speak on various construction issues
• His practice is focused on all aspects of construction law as well as complex commercial litigation
• Wrote an article entitled “Construction Divorce: Protect Your Client’s Claim Before It Is Too Late” (Parts 1 and 2), CEB Real Property Law Reporter Sept. 2011 (Part 1) & Nov 2011 (Part 2)
• J.D. degree, Loyola Law School; B.S. degree in animal physiology and neuroscience, University of California, San Diego
• Can be contacted at 702-784-5279 or [email protected]

Mark D. Johnson

Snell & Wilmer L.L.P.

• Partner in the Los Angeles office of Snell & Wilmer L.L.P.
• Has lead chair experience in more than 20 jury trials, bench trials and arbitrations involving a variety of construction, environmental, land use, real estate and toxic tort issues
• Regularly conducts seminars, speaks and publishes articles on a variety of construction topics including alternative dispute resolution, damages, delay, surety bond claims and insurance coverage
• Wrote a chapter entitled “Effective Dispute Resolution Provisions And Strategies To Resolve Construction Disputes During And After The Project,” in “Construction Dispute Resolution”, Aspatore Press, 2013
• Prior to becoming a lawyer worked as an engineer in the oil industry
• Member of the American Arbitration Association National Roster of Neutrals
• J.D. degree, Loyola Law School; B.S. degree in petroleum engineering, University of Southern California
• Can be contacted at 213-929-2532, [email protected], or https://www.linkedin.com/in/markdjohnsontriallaw