Justia Communications Law Opinion Summaries

The case revolves around an accident where the plaintiff, Daniel Bennett, was injured when his vehicle abruptly stopped after driving over a downed telecommunications line owned by Cox Communications of Louisiana (“Cox”). Bennett filed a lawsuit against several defendants, including Cox and Cable Man, Inc., a company contracted by Cox to maintain the line. Bennett alleged that both Cox and Cable Man were negligent in their handling of the line and their failure to properly train their employees.Cox, in response, invoked an indemnification agreement under their contract with Cable Man, requiring Cable Man to indemnify and defend Cox against any claims related to Cable Man's work. Cable Man refused the tender and filed an Exception of Prematurity, arguing that without a finding of liability or a judgment, the claim for indemnity was premature. The trial court denied the exception, but the Court of Appeal, First Circuit, reversed the trial court's ruling, finding Cox’s claim for indemnity to be premature.The Supreme Court of Louisiana, however, reversed the Court of Appeal's decision. The court held that a claim for indemnity raised during the pendency of the litigation and before a finding of liability is not premature. The court reasoned that this finding aligns with principles of judicial economy and efficiency, and the relevant Code of Civil Procedure articles pertaining to third party practice. The court clarified that while the right to collect on an indemnity agreement is determined upon judgment or finding of liability or loss, there is no prohibition on asserting a claim for indemnity in the same proceeding. The case was remanded for further proceedings. View "Bennett v. Demco Energy Services, LLC" on Justia Law