Indemnification as a Claim in New York

Indemnification is a legal concept that allows one party to shift financial responsibility for a loss or damage onto another party. In New York, a common law indemnification claim arises when someone is forced to pay for damages caused by another person’s actions. This type of claim is often seen in construction cases, employer-employee relationships, or situations involving multiple parties held liable in a lawsuit. Unlike contractual indemnification, which is based on a written agreement, common law indemnification is based on fairness and the relationship between the parties.

The Movant Has Been Held Vicariously Liable

To bring a valid claim for common law indemnification, the person seeking relief—often called the movant—must show that they were held vicariously liable. This means they were found legally responsible not because they personally did something wrong, but because of their legal relationship to someone who did.

For example, a property owner might be held responsible for injuries caused by a contractor working on their building. Even if the owner did nothing wrong, they may still be required to pay damages because of their role in overseeing the project. In that situation, the owner could seek indemnification from the contractor whose actions actually caused the harm.

Vicarious liability often arises in relationships such as employer and employee, general contractor and subcontractor, or property owner and maintenance company. It does not apply when the movant is directly at fault.

The Liability Stems from the Wrongdoing of Another

The second requirement is that the movant was held liable specifically because of someone else’s misconduct. The claim must be based on the idea that the other party actually caused the harm, either through negligence or another form of wrongdoing, and that the movant was only brought into the case due to their legal connection to that person.

This element ensures that indemnification is not used as a way to escape personal responsibility. The movant must show that they were faultless and that the other party’s actions were the real reason for the loss.

Conclusion

A claim for common law indemnification in New York is based on fairness. It allows someone who has been held responsible for another person’s conduct to recover the costs they had to pay. To succeed, the movant must show they were vicariously liable and that the liability arose entirely from another party’s actions. This cause of action helps prevent unjust outcomes where the wrong person bears the financial burden for someone else’s wrongdoing.

Find the Law

“To prove a claim for common law indemnification, the movant must show that he or she has been held vicariously liable for the wrongdoing of another. Structure Tone, Inc. v. Universal Services Group, Ltd., 87 A.D.3d 909, 911 (1st Dep’t 2011).” Mrkulic v. 405 Lexington Ave. LLC, 2013 N.Y. Slip Op. 30551, 16 (N.Y. Sup. Ct. 2013)