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California Civil Code Section 2778

Legal Research Home > California Laws > Civil Code > California Civil Code Section 2778

2778.  In the interpretation of a contract of indemnity, the
following rules are to be applied, unless a contrary intention
appears:
   1. Upon an indemnity against liability, expressly, or in other
equivalent terms, the person indemnified is entitled to recover upon
becoming liable;
   2. Upon an indemnity against claims, or demands, or damages, or
costs, expressly, or in other equivalent terms, the person
indemnified is not entitled to recover without payment thereof;
   3. An indemnity against claims, or demands, or liability,
expressly, or in other equivalent terms, embraces the costs of
defense against such claims, demands, or liability incurred in good
faith, and in the exercise of a reasonable discretion;
   4. The person indemnifying is bound, on request of the person
indemnified, to defend actions or proceedings brought against the
latter in respect to the matters embraced by the indemnity, but the
person indemnified has the right to conduct such defenses, if he
chooses to do so;
   5. If, after request, the person indemnifying neglects to defend
the person indemnified, a recovery against the latter suffered by him
in good faith, is conclusive in his favor against the former;
   6. If the person indemnifying, whether he is a principal or a
surety in the agreement, has not reasonable notice of the action or
proceeding against the person indemnified, or is not allowed to
control its defense, judgment against the latter is only presumptive
evidence against the former;
   7. A stipulation that a judgment against the person indemnified
shall be conclusive upon the person indemnifying, is inapplicable if
he had a good defense upon the merits, which by want of ordinary care
he failed to establish in the action.

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Last modified: March 17, 2014