Tesoro hired Nabors to drill an oil well that blew out, causing damage. Nabors settled a lawsuit and demanded Tesoro indemnify them under their drilling contract. Tesoro argued the indemnity didn't apply because Nabors was grossly negligent. The court ruled that Tesoro must pay because Nabors proved the accident wasn't gross negligence—only allegations don't count, actual facts do. This matters to subcontractors because indemnity clauses are enforceable even when accidents happen, unless you can prove the other party was grossly negligent or willfully wrong.
Indemnity agreements are enforceable in Texas even when accidents occur, unless the indemnitee (person being indemnified) was grossly negligent or willfully misconduct—simple negligence doesn't get you out of paying.
To escape an indemnity obligation, you must prove all elements of gross negligence with actual facts and evidence, not just make allegations or raise questions about what happened.
As a subcontractor, understand that broad indemnity clauses flow down from prime contracts and you'll likely be required to indemnify the project owner for most accidents unless you can prove they were reckless or intentional.