Siebe, Inc. v. Louis M. Gerson Co.
74 Mass. App. Ct. 544 | Massachusetts Appeals Court | 2009
What This Case Means for Subcontractors
Siebe sued Gerson for refusing to defend it in product liability lawsuits over defective respirator masks. The court ruled that Gerson's duty to defend was triggered simply by the allegations in the lawsuits—not by proof that Gerson actually breached its warranty. The case was sent back to the lower court. For subcontractors, this means a broad indemnification clause can require you to defend your customer even before liability is proven.
Key Takeaways
- •A 'duty to defend' clause is triggered by what the lawsuit alleges, not by whether you actually caused the problem. You may have to pay for defense costs immediately.
- •Broad indemnification language in your supply or distribution agreements can obligate you to cover your customer's legal defense for product liability claims.
- •Review your contracts now for defense and indemnification clauses. Understand what triggers your obligation and what it costs before you sign.
Gerson agreed to defend Siebe against any claims arising out of breach of warranties.
Frequently Asked Question
If I supply materials or products to a contractor and they get sued, do I have to pay for their legal defense?
It depends on your contract. If you agreed to a broad indemnification or defense clause, yes—you may have to pay for their defense just because they were sued, even before anyone proves you caused the problem. This case shows courts will enforce those clauses based on the allegations alone. Always negotiate these terms carefully before signing.
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