Contract Language at Issue in Slip-and-Fall Case

The plaintiff fell and was injured on an ice-covered parking lot. She sued the property owner and the snow removal contractor.  The trial court determined that none of the parties were at fault, but the owner sought reimbursement for attorney’s fees and litigation costs from the snow removal contractor based on an “indemnification clause” in a service agreement between the parties.  The agreement provided that “the Service Contractor shall defend, indemnify, and hold harmless Owner… from and against any and all liabilities… including, without limitation, costs, expenses and attorneys’ fees incident thereto, arising out of… Service Contractor’s performance (or failure to perform) the Contract Duties.” 

The trial court found that the owner of the property was entitled to “indemnification” and ordered the contractor to reimburse the owner for attorneys’ fees and the litigation costs of $24,000.  The contractor appealed and the Iowa Court of Appeals agreed with the trial court’s assessment on the issue of indemnification.  Attorney fees and litigation costs may be recoverable under Iowa law if they contractually negotiated by the parties.  Here, both parties assented to the indemnification clause. Even though all parties were not negligent in the slip-and-fall, it was the contractor’s duty to defend the lawsuit and the contract provided that they would indemnify the owner.  Isakson v. College Square Partners, L.L.C., No. 0-624/ 09-1787 (Iowa Ct. App., Sep. 22, 2010).