Legal Question in Business Law in California
Can you please explain what indemnify means in this situation?
The below language was on a document "Waiver, Release, Hold Harmless, and Indemnification Agreement". The agreement is something guardians have to sign to allow their children to enter a recreational area.
Does the below language mean the signer agrees to indemnify for any damage done as a result of his or her child's direct actions that lead to damage, or could this be interpreted to mean the child's presence and participation is enough to indemnify for any damage done, or damage that happened, while the child is there? (I do not feel language "from participation" is clear enough to specify indemnification is only for direct actions). If someone could clarify this would greatly be appreciated.
"5, for myself, the Participant(s) named, our heirs, assigns, representatives, and next of kin
agree to hold harmless and indemnify the [entities] from any and all injuries, liabilities or damages from participation.
6. I additionally agree to indemnify the independent owner of this [entities], their predecessors, parent, subsidiaries and affiliates, officers, and employees for any defense cost or expense arising from any and all claims, injuries, liabilities or damages arising from participation."
4 Answers from Attorneys
Paragraph 5 means that, if a third party sues the organization because of something your child does, you will have to pay any resulting judgment. Paragraph 6 means you will have to pay for the organization's legal bills (including expenses incurred by the lawyers) and court costs for defending against any such lawsuit, even if the organization wins.
I agree. The indemnity provision requires some degree of causation to trigger it...otherwise, all parents would be jointly liable for anything done by any child, and that is clearly not the intent of this provision. Indemnities are powerful contract provisions, but they are intended and construed to have a reasonable relationship to the indemnitor or his/her/its interests and affairs. It does not make you the indemnitee's insurer.
As a Franchise Attorney I need to point out an important factor. You did not quote the language that the paragraphs apply to. For example, what if the injuries are caused by the negligence of the facility? And I think this is the issue your question is raising. Consult with a good business or franchise attorney in your area for specific advice.
Mr. Franchise - Kevin B. Murphy, B.S., M.B.A., J.D.
Franchise Foundations, a Professional Corporation
Mr. Murphy is correct. Without the referring language, it is inappropriate to interpret the portions you provide.
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