Contribution, Indemnification, and Limitation on Joint and Several Liability Flashcards
Indemnification - Defined
CONTRACT, express or implied, gives a party the right to recover all of his liability from someone else.
party’s liability to other is determined by the terms of the contract
Joint and Several Liability in General
2 or more persons subject to joint liability
prevailing party can collect entire judgement from any liable party
How can a claim for indemnification or contribution be asserted?
separate action
Cross Claim
Counter Claim
interpleader claim in a pending action
NYS Comparative Negligence Rule
P may not recover the amount attributable to his or her own negligence
3rd Party’s right to seek contribution or indemnity from an employer whose employee was injured on the job
By Statute
3rd party (ie. manufacturer of the faulty tool used by employee) may not seek contribution or indemnification from employer unless employee is “gravely injured”
OR
employer has a contractual obligation to indemnify the 3rd party
Effect of Settlement for Plaintiff who settles with some but not all tortfeasors
Plaintiff settles for the dollar amount settled for or
the dollar amount the settling tortfeasors proportionate share represents
Effect of settlement on a settling joint tortfeasor
settling tortfeasor can’t seek contribution from other tortfeasors
AND
Can’t be sued by joint tortfeasors for contribution.
Distribution of Liability
Economic vs Non-Economic Losses
party having 50% or less of total liability
liable for ALL of P’s ECONOMIC losses.
Is liable for equitable share of NON-economic losses
(pain and suffering).
IF < 51% liable for injuries - liable for ALL non-economic damages also
Contribution in general
permits a party to seek money from other parties when they are forced to pay more than their fair share
SoL for Contribution or Indemnification
6 years from payment of damages
