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Goldberg Segalla’s Persistence Results in Order Granting Contractual Indemnification in Favor of Major Retailer and Reimbursement of Attorney’s Fees

Case Study

Goldberg Segalla’s Persistence Results in Order Granting Contractual Indemnification in Favor of Major Retailer and Reimbursement of Attorney’s Fees

The unflinching persistence of two Goldberg Segalla attorneys has resulted in a decision to hold harmless a major national retail client in a personal-injury case where a plaintiff made claims for permanent personal injuries in the Superior Court of New Jersey, Hudson County.

The case stemmed from a lawsuit brought by the plaintiff who claimed he was injured while trying to empty a dumpster outside the client’s store. Goldberg Segalla partner John M. McConnell and attorney Courtney E. Darmofal represented the retailer. They tendered the defense of their client to the owner of the property on which the store is located, requesting the retailer be held harmless and defended against the plaintiff’s claims under the unequivocal language in the lease agreement. The tender was not accepted and Goldberg Segalla’s client continued to incur legal fees and costs in defending the case.

Continuing a zealous defense, John and Courtney pressed the issue, filing a motion for summary judgment while discovery was ongoing, based on the lease agreement, arguing that the plain language of the lease agreement obligated the property owner to indemnify and defend the retailer against any claims that occurred at the exterior of the property.

As such, John and Courtney filed a motion for summary judgment and asked the Superior Court of New Jersey, Hudson County, to ensure that agreement was enforced — specifically requesting that should the case go to settlement, arbitration, or trial that the property owner indemnify and defend the retailer, hold it harmless, and reimburse it for its legal fees.

The court agreed, granting the motion for summary judgment and issuing an order that the property owner shall reimburse all costs and fees incurred by the retailer straight through to the final disposition of the case. The order further states that the property owner will be responsible for satisfying, in its entirety, any settlement reached, or verdict entered, in favor of the plaintiff against the retailer.

The order also compels the property owner to accept John and Courtney’s client’s tender demand, provide a complete defense to the retailer, and to indemnify and hold it harmless against the plaintiff’s claims.

The decision is a significant one for retailers. John noted it demonstrates there is an avenue for parties in a lease agreement to be indemnified, and defended, by filing a motion for summary judgment, even while discovery is ongoing. If such a motion is granted and the agreement allows for it, John added, a carefully crafted order also could allow for the recovery of legal fees and costs.

 

John M. McConnell is vice chair of Goldberg Segalla’s Business and Commercial group and is a trusted counselor to Fortune 500 companies and other publicly traded corporations. He is renowned for his record of success in high-stakes litigation and acumen in motion practice and trial advocacy. Based in Goldberg Segalla’s Princeton, N.J. office, he is licensed in New Jersey and Pennsylvania.

Courtney E. Darmofal focuses her practice on counseling and defending clients in complex commercial litigation and product liability matters. She is based in Goldberg Segalla’s Princeton, N.J. office.