***UPDATE – 2/12/2018***
The Court of Appeals’ decision in Hatch Development, LLC, et al. v. Sol’s Construction Co., Inc., 240 Ariz. 171 (App. 2016), which is the subject of this post from November 2016, is no longer good law. The decision in Hatch was abrogated by the Arizona Supreme Court’s February 8, 2018 opinion in KnightBrook Ins. Co., et al. v. Payless Car Rental System, Inc., No. CV-17-0156-CQ.
Indemnification provisions are mainstays of most construction contracts. As a result, all contractors should be aware that the agreements they enter likely impose certain indemnification obligations upon them. But even the most seasoned contractors may not realize that construction contracts are not always the final word on indemnity. Rather, certain indemnification obligations can arise purely as a matter of law, even if the parties’ contract is silent on the issue. This is what is referred to as “common law indemnification,” and it was the subject of the Arizona Court of Appeals’ recent decision in Hatch Development, LLC, et al. v. Sol’s Construction Co., Inc., 240 Ariz. 171 (App. 2016).