Wells Dairy sued refrigeration contractors after an ammonia system failure caused an explosion that shut down its ice cream plant and prevented it from fulfilling a contract with Pillsbury. The Iowa Supreme Court ruled that implied indemnity (where one party must cover another's losses) requires more than just a routine service contract—there must be independent duties involved. However, the court also found that equitable indemnity can apply based on professional engineering duties even without a written indemnification clause. The case was sent back to the lower court to determine if the contractors had such professional duties.
Don't assume you're protected from indemnity claims just because you have a service contract without an indemnification clause—courts may impose indemnity based on your professional duties and expertise.