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Implied Indemnity in Nevada

Posted by: on Mon, Mar 09, 2015

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The Nevada Supreme Court recently addressed the issue of
“implied indemnity” in Pack v. Latourette, 277 P.3d 1246 (Nev.
2012), where it held as follows:

“Equitable indemnity, which “allows a
defendant to seek recovery from other potential tortfeasors,” is generally
available to remedy the situation in which the defendant, “who has committed no
independent wrong, is held liable for the loss of a plaintiff caused by another
party.” Rodriguez v. Primadonna Company, 125 Nev. 578, 589, 216 P.3d 793, 801
(2009). Thus, Nevada’s equitable indemnity law has long drawn a distinction
between secondary and primary liability. ‘ “[I]n order for one tortfeasor to be
in a position of secondary responsibility vis-a-vis another tortfeasor, and thus
be entitled to indemnification, there must be a preexisting legal relation
between them, or some duty on the part of the primary tortfeasor to protect the
secondary tortfeasor.” ‘Doctors Company v. Vincent, 120 Nev. 644, 654, 98 P.3d
681, 688 (2004) (quoting Black & Decker v. Essex Group, 105 Nev. 344, 346,
775 P.2d 698, 699–700 (1989)). Additionally, where a party has committed an
“independent wrong,” and is thus actively negligent, that party has no right to
indemnity from other tortfeasors. See Rodriguez, 125 Nev. at 589, 216 P.3d at
801; see also Doctors Company, 120 Nev. at 658, 98 P.3d at 690.” {no negative
citations or references to date}.

In addition,  note the following statutory provision regarding equitable indemnity at NRS 17.245 and the effect of a release or covenant not to sue:

“1. When a release or a covenant not
to sue or not to enforce judgment is given in good faith to one of two or more
persons liable in tort for the same injury or the same wrongful death:

(a) It does not discharge any of the
other tortfeasors from liability for the injury or wrongful death unless its
terms so provide, but it reduces the claim against the others to the extent of
any amount stipulated by the release or the covenant, or in the amount of the
consideration paid for it, whichever is the greater; and

(b) It discharges the tortfeasor to
whom it is given from all liability for contribution and for equitable
indemnity to any other tortfeasor.

2. As used in this section,
“equitable indemnity” means a right of indemnity that is created by
the court rather than expressly provided for in a written agreement.

(Added to NRS by 1973, 1303; A 1997,
438)”

 

About the Authors: The law firm of Albright, Stoddard, Warnick & Albright is an A-V Rated Nevada-based full-service law firm having attorneys licensed in Nevada, California and Utah. Our firm’s practice includes a strong emphasis on construction, real estate, secured finance and litigation.

Note: This article, and any other information you obtain at this website, is not offered as legal advice, nor should it be relied upon as such, nor is it a solicitation for legal services. Only a licensed attorney can advise you with respect to your specific legal needs. We welcome your contacting our firm to discuss such representation. Contacting us does not create an attorney-client relationship. Please do not send any confidential information to us until such time as an attorney-client relationship has been established.  Call 702-384-7111 or email Mark Albright at gma@albrightstoddard.com.

About the Authors: The law firm of Albright, Stoddard, Warnick & Albright is an A-V Rated Nevada-based full-service law firm having attorneys licensed in Nevada, California and Utah. Our firm’s practice includes a strong emphasis on personal injury accidents. Call us at 702-384-7111.

Note: This article, and any other information you obtain at this website, is not offered as legal advice, nor should it be relied upon as such, nor is it a solicitation for legal services. Only a licensed attorney can advise you with respect to your specific legal needs. We welcome your contacting our firm to discuss such representation. Contacting us does not create an attorney-client relationship. Please do not send any confidential information to us until such time as an attorney-client relationship has been established.