Louisiana Supreme Court Holds Claims for Indemnity Allowed Prior To Liability Adjudication
Louisiana Supreme Court Holds Claims for Indemnity Allowed Prior To Liability Adjudication
The Louisiana Supreme Court ruled today in Daniel Bennett v. Demco Energy Services, et al., 2023-CC-01358 (La. 5/10/24), 2024 WL ***, a claim for defense and indemnity under a Master Services Agreement filed before a judicial finding of liability or loss is not premature. The Court explained “[w]e hold that a claim for indemnity raised during the pendency of the litigation and before a finding of liability is not premature….in light of our ruling today, to the extent any prior jurisprudence can be interpreted otherwise, we now clarify that such a claim for indemnity is not prohibited before a liability adjudication.” Bennett, 2023-CC-01358 (La. 5/10/24), 2024 WL ***, at *4-5.
The Court reversed the First Circuit Court of Appeal’s previous ruling which had granted an exception of prematurity and dismissed without prejudice a cross claim filed by Cox Communications, LLC against Cable Man, Inc. finding a cause of action for defense and indemnity was not ripe prior to a determination of damages owed and an actual loss sustained by an indemnitee. Bennett was remanded for further proceedings consistent with the opinion.
While there is a potential for an application for rehearing to be filed within fourteen days with the Louisiana Supreme Court, the Bennett ruling allowing the assertion of defense and indemnity before a finding of liability will have important implications on the timing of assertions of these claims in the context of construction litigation and beyond.
- Link to May 10, 2024 Ruling of Louisiana Supreme Court in 2023-CC-01358:
- Link to Reversed September 11, 2023 Ruling of Louisiana First Circuit Court of Appeal in 2023 CW 0581:
