Is your indemnity contract too broad?

A California appellate case recently found a consultant had to pay the developer's defense fees arising from an HOA v. Developer construction defect action. "All" the fees, and even though the jury found the consultant did nothing wrong (was not negligent). The indemnity provision was too broad, the court found.

The Lesson -- be careful that what you are signing does not impose a legal liability down the road that you hadn't planned on, or insured against. Draft your indemnity provisions with this new case in mind so you don't get stuck holding bag.