Lessons learned from National Union Fire Insurance Company of Pittsburgh PA v. Tokio Marine and Nichido Fire Insurance Company, 233 Cal. App. 4th 1348 (2015), a recent opinion issued by the California Court of Appeal, Second Appellate Division, illustrate how a subtle change to a standard indemnification clause might save product manufacturers, product sellers and their insurers from costly relitigation. It is possible that, had the parties to the indemnification agreement at issue in National Union agreed to broader discovery rights in a secondary battle after the underlying action went away, they may have been able to side step a costly four-year appeal. 

Republished with permission.