U. S. A., Inc. v. Kirkland

On Motion for Rehearing.

1. Advantage is sought to be taken from the cases holding that an agreement allowing indemnification of the indemnitee against his own negligence is enforceable if, and only if, such an intent is expressed in plain, clear and unequivocal terms (see Batson-Cook Co. v. Ga. Marble Setting Co., 112 Ga. App. 226 (144 SE2d 547) (1965)), which was not done here. It is argued that because the jury in the Kirkland case returned a verdict for Kirkland against both the indemnitor and indemnitee as joint defendants, the indemnitee was, under the court’s ruling granting judgment under the agreement, indemnified for its own negligence. This contention is without merit, however, since Kirkland’s recovery from indemnitee was not based upon the latter’s independent negligence but upon acts of the security guards provided to indemnitee by indemnitor, precisely the situation indemnified against.

2. It is contended in the motion for rehearing that expenses of litigation are not generally allowed as a part of the damages (Code § 20-1404), and that "to allow [indemnitee] to recover the expenses of litigation and attorney’s fees will in effect force all indemnitors to pay the expenses of the indemnitee despite the fact that the indemnitor may have legitimate questions concerning the applicability and legal consequences of the indemnity agreement.”

This contention is without merit since, as we understand the record, the expenses of litigation awarded by the trial court were not incurred by the indemnitee in prosecuting the cross claims against the indemnitor on the indemnity agreement, but rather were incurred by *487the indemnitee in providing a defense for itself in the main actions after the indemnitor had refused to do so. The fact that indemnitor may have questions concerning the applicability and legal consequences of the indemnity agreement is not a sufficient reason to adopt a rule precluding recovery of defense expenses incurred by the indemnitee as a result of the acts indemnified against, although it may be a sufficient ground for seeking a declaratory judgment so that indemnitor can determine whether it is in its interest to afford a defense to the indemnitee even if not bound to do so. See LaSalle Nat. Ins. Co. v. Popham, 125 Ga. App. 724 (188 SE2d 870) (1972).

Motion for rehearing denied.